FAQ: Will Filing for Bankruptcy Stop a Foreclosure On My Home?
Foreclosure Defense Lawyer Tampa, FL
Your home is your paradise. It’s the one place in the world where you should feel comfortable, secure, and safe. But if you are staring down a potential foreclosure of your home and the bills are piling up, you may not be feeling safe anymore.
Fortunately, filing for a Chapter 13 bankruptcy can offer some respite from your financial woes and worry. This type of bankruptcy gives people the chance to restructure their debt, making it more manageable. This can also include payments on your mortgage.
What is a Foreclosure?
A foreclosure is the legal process where a lender will try to recover the balance of a loan from a borrower who has ceased making payments on their mortgage. The lender will force the sale of the home and use it as a collateral for the loan.
A foreclosure on your home typically follows these steps:
- You have missed a mortgage payment within 30 days
- You enter default if you don’t make your late payment within 30 days
- Your lender sends you a letter of breach or demand after 30 to 45 days
- The lender files a notice of foreclosure after 90 days after your first missed payment
- You will receive a letter of default after two to three months after the first missed payment
If your home is undergoing a foreclosure, filing for a Chapter 13 bankruptcy may be in your best interest.
What is a Chapter 13 Bankruptcy Filing?
Chapter 13 bankruptcy, also known as a wage earner’s plan, enables a person to devise a plan to pay all of, or part, of their debts. With the assistance of a qualified bankruptcy attorney, you have the opportunity to propose a plan of action to repay all of your creditors. The amount you have to repay will be based upon several factors, including your income. The time period for the repayment plan lasts from three to five years.
How Can I Approve for a Chapter 13 Bankruptcy?
In order to approve for this type of bankruptcy, you must meet several requirements. These include:
- Your plan was proposed in good faith
- The fair treatment of priority and secured creditors
- You still have enough money for daily living expenses
How Can a Chapter 13 Bankruptcy Help with My Foreclosure?
Many folks choose to file for a Chapter 13 bankruptcy to avoid a foreclosure on their home. The foreclosure process will stop when you file for bankruptcy and enter an automatic stay, which temporarily stops the debt collections effort.
Filing for a Chapter 13 bankruptcy can give you the much needed relief and protection that you need. You can create a manageable plan to pay off your debt and also keep your home.
It is important to seek expert legal help from a qualified foreclosure defense lawyer Tampa, FL trusts if you are facing a foreclosure.
Contact Ziegler Diamond Law: Debt Fighters for their insight into bankruptcy and home foreclosure.