If you’re facing foreclosure on your home you might consider filing Chapter 13 bankruptcy in an attempt to save it. Chapter 13 proposes a payment plan for the relief of your debt which could include a provision for delinquent mortgage installments.
First of all there is the automatic stay factor that applies to the bankruptcy. Once you file, all collection attempts will be stopped immediately. This legal action will postpone any pending foreclosure sale as well, giving you more time to come up with the mortgage payments that you have fallen behind on. However, you must be able to make current mortgage payments while you are making up the ones that you have missed.
The foreclosure process is a comparatively slow one which gives the defaulter the advantage of time to come up with a way to save his home. The lender or mortgage holder will usually wait until the borrower has missed at least two or three payments before filing an official “notice of default.” Then the borrower will have three months to repay the debt that he owes. After that the lender will post a “notice of sale” on the property and send a copy to the borrower. It will inform interested parties about the details of the upcoming sale including where and when it is scheduled to take place. The notice will also be published in the local newspapers.
Even though a bankruptcy may leave a permanent smudge on your record it could be better than a default or foreclosure and a definite alternative to losing the home that means so much to you.
Be sure to talk to a bankruptcy attorney before deciding to file. Find one who has had experience with cases similar to your own and ask about the risks and benefits that may apply. Being able to weigh the pros and cons will put you in a better position to make the best decision.
Depend on the expertise of the associates of the Parker Lawyers firm to guide you through the intricacies of bankruptcy law. Call 303-841-9525 to arrange a personal consultation.