For some, losing their home due to unpaid debts or obligations is all too real. Before your home falls to foreclosure, bankruptcy may be able to stop the process altogether. Below you will find a guide as to how you may be able to save your home from being foreclosed by filing for bankruptcy.
One aspect that all chapters of bankruptcy have in common is what is referred to as “automatic stay.” This is put into place legally by the court making it illegal for any creditor or lender to make any kind of collection action against you, such as foreclosing your home.
Automatic stay lasts as long as the bankruptcy, giving you ample time to focus directly on your finances, instead of feeling the constant pressure of possibly losing your home.
How Chapter 13 Can Save Your Home
A Chapter 13 bankruptcy is one of the best ways to stop your home from being foreclosed. It is also a chapter that does require the liquidation of your assets to complete and reorganizes your current payment plan to make it more affordable while maintaining possession of property that would otherwise be liquidated (i.e. your home).
Chapter 13 takes debts that require immediate payment and extends them over the life of the bankruptcy. This is how it is able to stop foreclosure, by taking your mortgage debts that need immediate payment, and either discharging them entirely or giving you more time to pay them off.
The only possible caveat is that you need to maintain consistent payments on your plan in order for the bankruptcy benefits to remain untouched, otherwise you may be forced to liquidate some of your assets or switch to a different type of bankruptcy.
Contact Our Knoxville Bankruptcy Team Today
We understand how important it is to keep your home. We are ready to provide compassionate and experienced assistance to make sure you find the success you are looking for.
If you believe your home is about to be foreclosed, do not hesitate to contact us today through our website or give us a call at (865) 328-7993 today!