Chapter 13 Bankruptcy Lawyers Near Me

A mortgage payment is often the largest monthly expenditure that households have. If you are experiencing financial difficulties, this can be the most challenging bill to stay current on. However, if you fall behind on your mortgage, it might not be long before your mortgage lender begins threatening a foreclosure action. If you are in default on your mortgage or your lender has filed for foreclosure already, filing for bankruptcy might help you save your house. You should consider discussing your options with a local bankruptcy attorney from the Whitten & Whitten, today.

The Automatic Stay

When you file for Chapter 7 bankruptcy, a court order immediately goes into effect called the automatic stay. This order notifies your creditors that you have filed for bankruptcy and orders them to stop all collection efforts while your bankruptcy case is pending. This includes filing a foreclosure action, as well as pending foreclosure actions. 

In some cases, mortgage lenders might request that the court lift the automatic stay in regard to your mortgage debt. Whether this request will be successful depends on the circumstances of your case, and you want the right bankruptcy lawyer arguing in your favor to keep the stay in place. 

Chapter 13 Bankruptcy May Help You Keep Your Home

Through the Chapter 13 bankruptcy process, homeowners can set up a repayment plan to resolve certain debts, including mortgage payments. The plan will require you to also make regular payments to your mortgage while you repay the overdue debt, so this option may not be right for everyone. But if your financial circumstances have improved since you fell behind and you now need help getting current, Chapter 13 may be a good way to protect your home from foreclosure.

Freeing Up Funds to Pay Your Mortgage

Chapter 7 bankruptcy does not discharge your past-due mortgage debt, nor does it set up a schedule for you to address mortgage arrears like Chapter 13 can. However, Chapter 7 bankruptcy can discharge many debts, such as:

• Credit card balances
• Personal loans
• Some tax debts
• Most civil court judgments
• Medical bills
• Collection accounts
• Past due utilities
• Benefit overpayments

The payments on these debts can add up quickly, and if these debts are discharged, you are no longer obligated to make any payments. This can free up significant amounts of money each month. If you are behind on your mortgage, this extra cash might allow you to catch up before your lender files for foreclosure. 

If you already face a foreclosure action, you might have more luck in negotiations. When you can demonstrate to your lender that you can afford a modified payment, they are more likely to agree to modify your loan terms instead of trying to seize and sell your home. 

Learn How a Northwest Indiana Bankruptcy Lawyer Can Help

At the Whitten & Whitten, our goal is to help families take control of their financial situations and remain in their homes whenever possible. We can explore your different options and advise you on the best path to keep your home and move forward with a clean financial slate. If you would like to learn how our Indiana bankruptcy attorneys can help you, please contact us to set up a consultation today.