Buying a home is more than just a significant financial investment, but it’s also an important milestone for people looking for a place to call their own. Unfortunately, even temporary financial hardship can force you to fall behind on your mortgage payments and eventually face foreclosure. Depending on your income level and other circumstances, filing for bankruptcy may be able to prevent foreclosure and allow you to keep your home.
What Is Foreclosure?
If you miss enough payments in a row, your lender will initiate foreclosure, the process through which they legally seize your house—after which it will be sold. Unfortunately, many lenders refuse to accept partial payments on past due amounts, so even if you were temporarily out of work or facing a financial emergency, collecting the money to bring your account current may be impossible. In these cases, a Chapter 13 bankruptcy may be the best tool available for preventing foreclosure and making up the arrears on your mortgage.
What Are the Benefits of Chapter 13 Bankruptcy?
A Chapter 13 bankruptcy allows distressed borrowers with sufficient financial resources the opportunity to pay back certain secured debts through a court-managed payment plan. To qualify, you must submit a payment plan showing that you are capable of paying back the arrears on your mortgage over three to five years, while keeping up your other financial obligations. While the case is in process, the lender will be unable to take any further foreclosure action, although they may begin the process again if you fail to make your regular bankruptcy payments. When your case is discharged, your account will be current, and you may continue with your life.
The thought of losing your home can be a stressful, terrifying experience, but solvency is only a phone call away. For over 30 years, homeowners throughout Hamilton, OH, have relied on Harry B. Zornow for help with debt relief. Visit his website for an overview of his bankruptcy services and expertise, or call (513) 737-9770 today to begin reclaiming your life from debt.