Are you behind on your mortgage payments and facing foreclosure in Tennessee? If so, you're not alone. Every day, thousands of Americans find themselves in the same difficult situation. But don't worry – there are solutions available to you. Our Knoxville bankruptcy team discusses bankruptcy as a potential solution to stopping foreclosure. We'll go over the different types of bankruptcy available to homeowners and the steps you need to take to file for bankruptcy protection. So if you're feeling overwhelmed and panicked about losing your home, read on for information that can help you get back on track.
Effect of Chapter 13 Bankruptcy on Foreclosure
In many cases, exemptions will not protect your home from being liquidated to repay creditors in Chapter 7 bankruptcy. Chapter 13 allows individuals to reorganize their debts and repay them over time. If you're facing foreclosure, you may be able to file for Chapter 13 bankruptcy and stop the foreclosure process. You'll need to work with an experienced bankruptcy attorney who can help you navigate the process and ensure that all of your paperwork is in order.
Once you've filed for Chapter 13 bankruptcy, an automatic stay will go into effect. Your creditors are not allowed to take further action against you – including foreclosing on your home. The automatic stay will remain in effect until your bankruptcy case is resolved or discharged. In most cases, the automatic stay will last for the duration of your repayment plan, typically three to five years.
If you complete your Chapter 13 bankruptcy repayment plan, you'll be able to keep your home and avoid foreclosure. However, if you miss any payments or otherwise default on your repayment plan, the automatic stay will be lifted, and your creditors will be allowed to resume collection activities – including foreclosing on your home. That's why it's essential to make sure you can afford the monthly payments before filing for Chapter 13 bankruptcy.
Have a Team on Your Side!
The bankruptcy process can be complicated and confusing, especially if you're going through it for the first time. That's why it's so important to have a team of experienced professionals on your side who can help you navigate the process and make sure that all of your paperwork is in order. The team at The Law Offices Of Mayer & Newton has helped countless homeowners file for bankruptcy and stop foreclosure. We're here to help you with every step, from filing your paperwork to working with your creditors. Contact us today to learn more about how we can help you stop foreclosure and get back on track.
Call The Law Offices Of Mayer & Newton at (865) 328-7993 today to get on the path to financial freedom. Set up your free case consultation today.