Tuesday, July 26, 2016
How Filing Bankruptcy Can Stop A Foreclosure
A person’s home truly is their castle; it is the place you go to at the end of a hard day to recharge your batteries and is where your friends and family gather at the holidays or on special occasions. Owning a home has long been referred to as the “American Dream” and is something most people aspire to every day. So when the chance you might lose your house comes up it can be a hard pill to swallow. This country has seen more foreclosures in the past years than ever before and the problem has reached epidemic proportions. How to stop a foreclosure became such a hot topic that even the government stepped in; first by bailing out the banks and then second by implementing programs designed to keep people in their homes. Some of those programs allow a mortgage lender to rewrite their own loan, which generally includes reducing the interest rate or reducing the amount due from an inflated sum to something more in line with what the property is worth. In either case the borrower benefits because the monthly payment goes down. The problem with this plan is that not all lenders participate and for those that do the hurdles faced by the homeowner can be insurmountable. This leaves many residents with only the option of bankruptcy in order to save their home from foreclosure.
Bankruptcy will help stop a foreclosure in these ways:
● When a bankruptcy case is filed all collection efforts, on all debts, has to immediately cease. This includes any pending foreclosure matter. So, the minute you file a bankruptcy case, any foreclosure action by the lender has to stop.
● If you file a Chapter 13 case you will be allowed to spread out the payments of any back due amounts by paying them through the Chapter 13 Plan. This will allow you to focus on making the regular payment while getting caught up over a period of time rather than all at once as required by most lenders.
● If you file a Chapter 7 bankruptcy you are able to get rid of your high interest rate unsecured debt and the monthly payments that go along with that debt and this can free up your money to put towards your house payment.
We understand how important it is to save your house from foreclosure. Being forced to move out and find a new place to live is no one’s idea of fun, and we will help you make sure that doesn’t happen to your family. Bankruptcy is a very real option for thousands of homeowners a year and is a solution that works.
For more information about how bankruptcy can save your house from foreclosure, call us today or reach us online at www.law-ri.com. We offer appointments at multiple locations for your convenience and can schedule a time to visit with you today.