Learn How Our Bankruptcy Attorneys Can Help You
If you are in financial trouble and you are concerned about the prospect of losing your home in a foreclosure sale, you may want to consider filing for bankruptcy as a way to save your house. The idea of losing your home can be heart-wrenching. But through a bankruptcy filing, you can protect your home from your creditors.
Choosing Bankruptcy in Lieu of Foreclosure
If your goal is to protect your house from a foreclosure sale, then you need to look into filing for bankruptcy. When you file for Chapter 7 or Chapter 13 bankruptcy, the bankruptcy court will automatically issue a stay that prevents your creditors from pursuing their collection efforts against you, which includes preventing your creditors from initiating a foreclosure sale on your home. However, your creditors could seek to have the stay lifted through a motion to lift the stay, which would expose your home to the foreclosure proceeding.
Chapter 13 Bankruptcy Repayment Plan Can Protect Your Home
If you file for Chapter 13 bankruptcy, you can protect your home from foreclosure, even if your creditors try to file for a motion to lift the stay. Filing for Chapter 13 bankruptcy allows you to develop a repayment plan for your overdue mortgage payments. Under Chapter 13 bankruptcy you will need to propose a repayment plan for your overdue mortgage payments over a period of time. You will be required to pay both your normal mortgages payments that are due each month in addition to your repayment of the overdue payments until you have made up all of your overdue mortgage payments. By entering into a mortgage repayment plan through Chapter 13 bankruptcy, you will get to keep your home and you will not have to worry about your home being sold in a foreclosure sale, unless you are unable to make payments under your repayment plan.
Chapter 13 bankruptcy also be handy if you are worried about a foreclosure on a second or third mortgage. Chapter 13 bankruptcy can help you by eliminating some of the payments on your second or third mortgage. If your second or third mortgages are backed by the equity you have in your home, but your home has dropped in value, there might not be enough equity to secure your other mortgages. This means that your second or third mortgage can be converted into unsecured debts, which can be discharged in part of in full through Chapter 13 bankruptcy.
Let Us Help You With Your Bankruptcy Proceeding
There may be other alternatives that are available to you besides bankruptcy, and these other options should be explored thoroughly before you choose to proceed with a bankruptcy filing. There are many long-lasting consequences to filing for bankruptcy, so you need to be sure that you are ready to deal with these long-term consequences when you choose to file for bankruptcy. If you are considering filing for bankruptcy in Indiana in order to protect your home from foreclosure, it is important that you discuss your situation with an experienced bankruptcy attorney as soon as possible. The bankruptcy lawyers at the Schmidt Whitten & Whitten are knowledgeable and experienced, and are ready to help you.
Schedule A Free Consultation
At Schmidt Whitten & Whitten, we offer a free consultation during which we will examine the facts of your case and advise you on how best to proceed