Your home is one of your most important assets. However, there are various situations that can put ownership of your property in jeopardy. For homeowners facing the prospect of foreclosure, filing for bankruptcy may provide a solution. How it can help depends on your situation and where you are in the foreclosure process.
When you have concerns about your ability to pay the mortgage on your home, the best time to take action is before you fall behind in making your payments. There are a variety of situations that can crop up that stretch your income and derail your budget. These include:
As a result of any of the above, you may be struggling to meet your monthly obligations. The important thing to remember is to continue making timely mortgage payments. As long as you are not behind and have not received any notices from your mortgage lender, there are several options to help you get your finances back in balance. You may be able to file either a Chapter 7 or Chapter 13 bankruptcy through the Michigan Courts, which can help alleviate your unsecured debts, providing the extra room you need in maintaining a monthly budget.
Falling behind on even one mortgage payment can have serious consequences and may cause your lender to initiate foreclosure proceedings. At this point, your options become somewhat more limited. However, filing for Chapter 13 bankruptcy may still provide a solution.
The U.S. Bankruptcy Court refers to this type of bankruptcy as a ‘wage earners plan.’ It allows you to maintain certain types of property, such as your home or car while re-negotiating payment terms. Once you file your bankruptcy petition, an automatic stay is put in place, preventing lenders from taking further action against you.
Bankruptcy is not a guaranteed solution for saving your home. The sooner you act, the better your chances will be. Reach out and contact the Law Office of Karen E. Evangelista, P.C. today and request a free consultation to discuss your specific situation with our Rochester bankruptcy attorney.