Bankruptcy can help you save your home

Foreclosure is a major issue these days as people are faced with unemployment, underemployment and costly medical bills. Most homeowners worked very hard to be able to purchase their homes and the prospect of losing it can be very frightening but a bankruptcy attorney can help.

Under a couple of bankruptcy structures the foreclosure process can be stopped or delayed. When a person files for Chapter 7 or Chapter 13 bankruptcy the court will issue an automatic stay, which directs creditors to halt collection activities. If your home is slated for a foreclosure sale it could be delayed for two to four months while the bankruptcy is pending.

While Chapter 7 can delay a foreclosure, Chapter 13 is the structure that can help an individual avoid foreclosure. Under this filing, you can pay down the late unpaid payments over a time period you and your bankruptcy lawyer proposes. The catch is that a homeowner must be able to make their regular mortgage payment along with the payments in arrears. If the individual is able to make all the necessary payments they can hold onto their homes.

Anyone facing foreclosure can meet with a bankruptcy attorney to see if they can help them stay in their homes and eliminate some of the debts causing them hardship. Despite the negative associations, bankruptcy can give a person a fresh start and allow them to get return to financial stability.