Want to Stop Foreclosure? Read This!
Losing your home to the creditors or the lenders is a nightmare. When you default on your payments or don’t pay them as stipulated, you stand a strong chance of losing your home. The creditor can claim ownership over your house to settle the debts. This process is called foreclosure.
Is there a way to prevent this from happening? Yes, you can file for bankruptcy to stop foreclosure. Bankruptcy is the last hope for people buried under never-ending debts. Where Chapter 7 bankruptcy enables people to discharge their debts by selling their properties (including their home), Chapter 13 allows them to pay off debts in a systematic manner without having to sell their assets.
Bankruptcy isn’t a band-aid for piling debts. It requires long-term commitment to pay off your debts. Nobody can decide to file for bankruptcy at moment’s notice. It has eligibility requirements, tests to determine your disposable income, long-term consequences of failing to commit to the process, and the like.
If you are bent on keeping your home from falling into the hands of the creditors, you could consider bankruptcy to stop the foreclosure.
When you file for Chapter 13 bankruptcy, the court gives a “stay order”. This order minimizes the chances of losing your home to the bank or the lenders. If a stay order is in motion, creditors cannot proceed and claim ownership over your house or other assets. It gives you a break from dealing with your creditors and mortgage lenders all day long. Meanwhile, you should prepare a repayment plan to pay your debts and submit it to the court for approval. Do not work on this repayment plan all by yourself. Consult our experienced attorneys at Segaul Law Firm and decide accordingly. Sound legal advice can save you many a hassle in the long run.