Can a Chapter 13 Bankruptcy Prevent Foreclosure?
October 22, 2008
Are you one of the thousands of people faced with tough decisions about your financial future? Are you behind in your mortgage payments and facing foreclosure? Are you trying to find an option that will work for you and allow you to keep your house and still make payments?
You could call your mortgage company and try to work a deal with them. Sometimes they will look into your payment options and are able to restructure part of the delinquent payments. But what often happens is that they tack a percentage of the missed payments onto your future payments making them considerably larger and harder to pay. Then if you miss another payment, you are again faced with the threat of foreclosure.
If your mortgage company is unable to help you, there is something called a mortgage assistance company. These companies can be a help or a rip off scam. If they are reputable companies, they can offer you some relief but more often they charge you money to do what you could have done for yourself, which is call your mortgage company.
You could save the money that you would have paid a mortgage assistance company and talk to a bankruptcy lawyer.
You may be eligible for a Chapter 13 Bankruptcy. A Chapter 13 Bankruptcy may help you free up funds that could go toward your mortgage payment by reducing or eliminating some of your debts. Studies have shown that most homeowners would pay their mortgages if they only had the funds. It’s also possible that a Chapter 13 Bankruptcy could stop any foreclosure activity and give you a lot longer to catch up on your delinquent payments.
When you are faced with tough financial decisions concerning you home, don’t panic. Consider all your options carefully. An experienced bankruptcy lawyer will openly discuss your needs and options with you and guide you toward a better financial future.
If you enjoyed this post, make sure you subscribe to my RSS feed!