Falling Behind on Mortgage Payments
Filing for bankruptcy has helped many debtors save their home by giving
them more time to get caught up on payments or even
prevent foreclosure. But, if you are considering
Chapter 7 as an option regarding missed mortgage payments, you may need to review
this with your bankruptcy attorney to see if this will remedy your situation.
Chapter 7 bankruptcy may give you more time to negotiate a payment arrangement
with your mortgage lender, but there are other options to consider in
helping you keep your home permanently.
When you file bankruptcy the
automatic stay goes into effect. This halts collection activity by creditors for a limited
time while your case is being reviewed. In Chapter 7, this may help you
temporarily in seeking an alternative option if you are behind on mortgage
payments. If you are financially able you could makeup missed payments
or consider payment plan solutions with your lender. For some people,
filing Chapter 7 gives them enough time to seek a solution before foreclosure
proceedings begin.
Yet, everyone’s situation is different and it is understandable when
you are unable to make payments. Depending on personal circumstances you
may be able to seek loan modification to reduce your payments or arrear
missed payments into the new loan. Or, your lender may work with you in
reducing interest rates or temporarily lowering mortgage payment amount.
Chapter 13 bankruptcy is another option; you can repay creditors under an affordable payment
plan approved by the court based on your ability to make payments over
a 3 to 5 year period.
Considering Bankruptcy?
If you need assistance in finding out if bankruptcy is right for you,
feel free to set up a free consultation by giving us a call or fill out our
contact form.
Reference:
https://www.nolo.com/legal-encyclopedia/behind-my-mortgage-can-chapter-7-bankruptcy-help.html