When families file for bankruptcy, one of the most common concerns they have is whether they will keep their family home. For many, this weighs heavily on the mind of someone who is considering bankruptcy as an option. While the automatic stay can undoubtedly stop foreclosure and offer relief, this is only short-lived, which is why an experienced bankruptcy lawyer will play a critical role in moving forward. They will discuss your needs and assist with alternative options that allow debtors to retain homeownership. When bankruptcy is the only option, choosing the right chapter is imperative for keeping the home. While it can be easy to avoid the issue, taking immediate action is one of the most critical steps.
The Automatic Stay
It should come as no surprise that many file for bankruptcy to save property that is being foreclosed upon. The automatic stay is granted in bankruptcy cases, stopping lenders from taking action to collect debts that are owed. The automatic stay is often granted during bankruptcy proceedings to allow debtors equal footing to resolve their debts. This usually comes with much relief as foreclosure actions, and constant phone calls to collect debts are often stopped.
Choose the Right Bankruptcy Filing
When bankruptcy is the most viable option for managing debts and debtors would like to remain in their homes, choosing the right filing will be imperative. The filing chosen will primarily rely upon the situation. When selecting the proper bankruptcy filing, the decision will largely depend on how current debtors are on their mortgage and the equity they have in their homes. You may be able to file for either Chapter 7 or Chapter 13 bankruptcy, which will depend upon the equity in your home and the exemptions allowed within the state. Bankruptcy is one of the most significant decisions that debtors can make, and when saving a home from foreclosure, immediate action will be critical. Don’t wait until a few days before the official foreclosure to contact a lawyer. Debtors at risk for losing their homes should contact a lawyer as soon as possible to weigh their options and adequately plan for how best to move forward.
Immediate Action is Imperative
Foreclosures happen when the borrower is not able to make their mortgage payments. Should this occur, the lender will take steps to retain the money owed to them by foreclosing on the property to obtain the balance that is owed. Facing debts can be challenging and even shameful. It can be hard to reach out to a creditor or a lawyer to discuss obligations and develop a plan of action. Despite the difficulties and emotions present, taking immediate action to control the situation will be necessary. When falling behind on payments, it can be easy to ignore the problem, especially if you do not believe there is a realistic solution.
When bankruptcy is the feasible solution, a debtor’s thoughts may turn to concern over whether they will be able to remain in their home post-bankruptcy. This can be a complicated process that requires assistance from an experienced bankruptcy lawyer. While this may not be an option in some situations, it’s critical to make decisions with a professional before assuming that all hope will be lost. If you cannot catch up on arrears through the various bankruptcy filings available, foreclosure may be inevitable. However, to ensure that all options have been explored, it’s essential to consider a lawyer’s assistance. Their services will be able to assist with making sure that you are not losing your home when a solution may be available
For more information, call Allmand Law Firm, PLLC today.