Filing for bankruptcy under chapter thirteen is a method that is used by many homeowners to stop foreclosure. This is the only form of bankruptcy that offers hope of allowing the mortgagee to remain in the home. If you are trying to avoid losing your home to foreclosure by filing for bankruptcy, you need to file for chapter thirteen bankruptcy, not chapter seven.
If you have a reasonable amount of debt that might be manageable if you are able to change the terms, then you might be able to do a bankruptcy reorganization. This type of bankruptcy is not for people who are drowning in so much debt that they will never be able to pay it off regardless of the terms.
The best part of filing for chapter thirteen bankruptcy is that it usually stops the foreclosure process immediately. This is not a permanent thing though. It’s just a temporary stay until the bankruptcy proceedings are completed. Some people choose to take advantage of this stay to try to get their house sold if they have a sale pending. It may buy enough time to allow you to complete the sale before the foreclosure goes through. However, a bankruptcy looks just as bad as a foreclosure on your credit report so that should be taken into consideration.
If you end up with both a home foreclosure and a chapter thirteen bankruptcy on your credit, it will really reduce your chances of getting a loan in the future. It is best to have as few negative marks as possible on your credit report. That is especially true of the biggest negatives – bankruptcy, foreclosure and eviction.
Since bankruptcy reorganization is one way that someone facing foreclosure has a shot at keeping their home, it is worth taking a look at if you are in that situation. If you qualify for bankruptcy reorganization and can come up with a plan that is acceptable to the court for paying back your debts, you may be able to stay in your home.
Of course, you should take extra care to ensure that your bankruptcy reorganization plan is realistic. You will not be given another chance to reorganize your debts. Once you have set up a bankruptcy reorganization plan, you must make every payment on time. Otherwise, you could still end up losing your home to foreclosure.
You should speak with an experienced bankruptcy attorney before filing for chapter thirteen bankruptcy reorganization. An attorney who has handled many bankruptcy cases will be able to explain how bankruptcy works and advise you on whether it is likely to help you with your situation. Make sure you select an attorney who has done a lot of work with bankruptcy and foreclosure.
Chapter thirteen does not help everyone. In fact, it can make things worse if you are unable to keep up with the reorganized debt payments. You should always do plenty of research before making a major financial decision, and this is no different. Learn all you can about bankruptcy and foreclosure before deciding whether chapter thirteen bankruptcy is the right choice for you.
No body on the planet needs to lose their home. This is why there are a lot of people looking for a way to Stop Foreclosure. If you are one of them, you may want to look for Foreclosure Help.
