How to Stop Foreclosure From Happening to You!

The fear of having your home foreclosed upon is one that looms heavy over the heads of many who are struggling with unmanageable debt. They may wonder if there is a solution that could help them recover from that debt without dealing with foreclosure – and thankfully, there is.

Bankruptcy – The Best Way Forward?

For some people who are facing foreclosure, the thought of adding bankruptcy to that equation as well might be overwhelming. However, bankruptcy might actually be the solution.

During a Chapter 7 bankruptcy, participants are granted what is known as an automatic stay. This halts all attempts to collect on any outstanding debt that the person owes – including mortgage debt. This halts foreclosure before it begins, preventing the process before it can start.

Unfortunately, this is simply a very short term solution, if your intent is to keep your home as the mortgage company can file a motion with the court to have the bankruptcy stay removed and proceed with the foreclosure. In the majority of cases, a Chapter 7 bankruptcy is not a good option.

Other Options – Chapter 13 Bankruptcy

Looking to keep your home? If you want to work through your debt and also keep your home, you may be a good candidate for a Chapter 13 bankruptcy. This type of bankruptcy does allow you to keep your home, assuming that you meet the following requirements:

  • You can resume making mortgage payments after filing for bankruptcy.
  • You can meet your monthly living expenses with your current income.
  • You can create a realistic plan that entails repayment of your debts in a monthly amount that you can afford, with any remaining debt subject to discharge at the end of your case.

Doing all of this on your own can be difficult, which is why it is best to seek the guidance of experienced Phoenix, AZ foreclosure lawyers. Statistics show that less than 2% of Chapter 13 cases filed by an individual without the assistance of an actual attorney will fail. Talk to the experts at the Law Office of Larry P. Karandreas for more information and to learn whether bankruptcy might be the right choice for solving your foreclosure problem!

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