The thought of losing your home is a scary one — and when faced with the reality of foreclosure, it can lead you to feel hopeless and concerned about your future. No matter the reasons you’ve fallen behind on your mortgage payments, here’s how Chapter 13 can help.
How Chapter 13 Can Stop Foreclosure
If you’ve been threatened with foreclosure, Chapter 13 can be a viable solution to keep your home through reorganization of the payments you’ve fallen behind on. Once you file a petition for Chapter 13 bankruptcy, an “automatic stay” immediately goes into effect, which prohibits lenders from moving forward with foreclosure proceedings while you work on catching up with mortgage payments.
What Happens to My Second Mortgage?
It’s not uncommon for homeowners to have second mortgages. Bankruptcy law allows second mortgages to be treated as unsecured debt. Resolving second mortgage debt can be tricky, so enlisting the help of an experienced bankruptcy attorney can advise you of your options and the best plan of action for second mortgage debt.
Other Benefits to Chapter 13 Bankruptcy
In addition to avoiding foreclosure, Chapter 13 has the ability to relieve many types of debt situations. Here are some other benefits to filing Chapter 13 bankruptcy:
- Stop harassing phone calls from creditors.
- Stop car repossession and loss of other property.
- Third party protection - creditors will not be able to pursue collection activities from co-signers.
- Alleviate credit card debt.
- Stop wage and bank account garnishment.
- Alleviate certain tax debts.
Every financial situation is unique and bankruptcy law can be complicated. If you are facing foreclosure and/or struggling with debt, having an experienced bankruptcy attorney on your side can make all the difference. Contact Wadhwani & Shanfeld at (800) 996-9932 today for a free consultation to learn your options. We’ll answer all of your questions and guide you every step of the way.