Report Finds Bank Repossessions Rose in Utah in May
Prevent Foreclosure By Filing For Chapter 13 Bankruptcy
Those who have fallen behind on mortgage payments need not resign themselves to the eventual loss of their home through foreclosure. For some people, filing for Chapter 13 bankruptcy is an appropriate option that allows them to regain solid financial footing and save their home.
Under Chapter 13 bankruptcy, the individual establishes a repayment plan, through which he or she can repay certain debts over a period of time. If the foreclosure process has already been initiated on the homeowner's residence, filing for Chapter 13 bankruptcy can stop the proceedings. Once an individual has filed for Chapter 13 bankruptcy, an automatic stay goes into effect, which prevents creditors from seeking payments from the individual and stops foreclosure proceedings.
Upon completing the terms of the repayment plan, which will generally include making mortgage payments during the term of the repayment plan, debts that qualify will then be discharged. In other words, the individual will no longer be responsible for repaying the discharged debts.
If you are struggling to make your mortgage payment every month and are at risk of losing your home, there are options available to prevent the foreclosure process. In such cases, a skilled bankruptcy attorney will be able to provide advice on the best course of action for your situation to help stop your home from going into foreclosure.