Homeowners strive to pay their mortgage payments on time so they can one day have the deed in hand without owing any money. Unfortunately, unexpected circumstances can arise and cause a homeowner to grow behind on their payments. When foreclosure becomes a threat, homeowners need to be aware of the legal rights they have for filing for bankruptcy.
How Can Bankruptcy Help?
As soon as a homeowner learns they are not going to be able to make their payments, they need to contact their mortgage holder. Waiting too long could spell disaster for a homeowner because the mortgage holder can typically start the foreclosure process as soon as a person is three payments behind.
Chapter 13 is the ideal type of bankruptcy for those who are struggling with a possible foreclosure. This type of bankruptcy requires a person to have a reliable income coming in each month so they can make their payments. The payments are made as a part of a restructured payment agreement that is sent to the judge for approval. If approved, this schedule will need to be followed to ensure the debts are paid off in a timely manner.
Creditors Must Stop Trying to Collect
Once a Chapter 13 bankruptcy is in effect, the creditors must stop all collection activity, even those relating to foreclosure. Once the cease and desist letters have been sent out by the judge, no more collection activity can take place. This gives the debtor time to pay off the debts they owe within the period granted by the judge. In most cases, this time period is between three and five years.
To get started, individuals must first schedule a consultation appointment to learn if they are a good candidate. Once the lawyer is hired, they will take over all the steps involved in the process of filing for bankruptcy.
Those who would like to learn more about their bankruptcy options should visit https://tulsabankruptcylawyers.net/should-i-file-chapter-7-or-chapter-13-bankruptcy/. Call the office right away and they will be happy to schedule your appointment to get started. They will help you legally overcome your debts so you can avoid foreclosure.