Filing for bankruptcy is one of the most considered options amidst homeowners who are facing foreclosure. There are so many benefits one can derive from filing for bankruptcy and there are also consequences that can result from not going through the process properly. Filing for bankruptcy can of truth help you stop foreclosure even at the very last minute, however, after the foreclosure is stopped, homeowners will face the effect of filing for bankruptcy and know if they have made the right choice.
Why you should file for chapter 13 bankruptcy
Chapter 13 bankruptcy is best for homeowners who want to stop the foreclosure but at the same time keep their home. So many homeowners do not know this and just file for any chapter in an attempt to stop foreclosure immediately especially if they’re out of time. Many learned their lessons later in a hard way when they discover that chapter 7 bankruptcy involves selling your properties including your home to pay off debt. However, chapter 13 allows you to keep your home and also help you stop foreclosure.
Also, chapter 13 bankruptcy allows you to propose a repayment plan that can span for as long as 5 years. Chapter 7 does not offer such luxury and it’s better if you are well aware of your options before filing for bankruptcy.
How does it work?
After you’ve filed for bankruptcy, the court will release an automatic stay order on your behalf and the purpose of this is to stop all creditor’s collection activities which include foreclosure. The foreclosure sale will be stopped and you will have some time to discuss repayment plans with your lender.
Do not attempt to file for bankruptcy on your own, even though it’s something you can do online by yourself, don’t do it. You need to hire a lawyer you help you through the process.
For information on foreclosure defense call us at (877) 399 2995. We offer litigation document review support, mortgage audit reports, securitization audit reports, affidavit of expert witness notarized, and more.