Bankruptcy can Save Your Home! Our Florida Bankruptcy Attorneys Show You How.
If you are one of the thousands of Floridians facing foreclosure, you have more than likely considered bankruptcy as an avenue of relief. Individuals tend to inquire whether or not filing Chapter 7 or Chapter 13 bankruptcies is a way to avoid losing their property. Both Chapter 7 and Chapter 13 bankruptcy contain powerful tools that can help you save your home. Please read below to learn more and take advantage the free consultation our office offers. You can speak to an experienced bankruptcy attorney, normally the same day you call. Call 813-289-7574
Filing Bankruptcy halts the foreclosure process!
The first thing a bankruptcy filing accomplishes is to stop the foreclosure process. Lenders can't foreclose or even try to collect debt until permitted to do so by the bankruptcy court. Although many people think of bankruptcy as losing everything they own it actually can be used to keep everything you own. Take this opportunity to speak to a bankruptcy lawyer about how a bankruptcy may save your home. Call our bankruptcy attorney at 813-289-7574.
Advantages of a Chapter 13 Banruptcy.
Many people file for Chapter 13 bankruptcy specifically to stop foreclosure. One advantage of filing a Chapter 13 bankruptcy is that you are allowed to get caught up on mortgages and even car loans over a the life of the bankruptcy plan. The life of a bankruptcy plan is usually between 36 and 60 months. Although the bank may allow you to get caught up over time there is no way outside of bankruptcy to force them to allow this option. If you have found the bank to be uncooperative a Chapter 13 is one way to force their cooperation.
A Chapter 13 bankruptcy may also allow you to lower payments on other secured debt such as car payments or second mortgages, while essentially elimination unsecured debt such as credit cards or medical bills. This restructuring of your debt may be enough to allow you to keep your home or car and rebuild your finances without losing a thing.
Another advantage of filing a Chapter 13 is the lien strip. This is a process where you can actually strip the 2nd mortgage or junior liens from your home. To do this the current value of your home must be less than the amount that you owe on your first mortgage. Most people are not aware of just how much them value of their home has declined. It is always a good idea to stay up to date as to the value of your home. A good starting point is zillow.com, although this is not always accurate it will at least give you a rough idea and may open the door to a lien strip.
The ability to strip a lien (or second mortgage) in a Chapter 13 bankruptcy can be a huge advantage for borrowers. Homeowners may have, for example, a $200,000 first mortgage balance and another $50,000 on a home equity loan. If the home value has dropped to less than $200,000, the judge could rule that all $50,000 of the second is unsecured. Then, it can be paid off at the same pennies-on-the dollar as other unsecured debt
If you are interested in learning more about a lien strip please call and speak to our bankrutpcy attorney. 813-289-7574
Advantages of a Chapter 7 Bankruptcy.
A Chapter 7 will not directly fix your mortgage, however it may provide you enough relief that you can catch up or afford your mortgage in the future. A Chapter 7 bankruptcy should get rid of most if not all of your unsecured debt. Credit card bills, medical bills, and personal loans are usually wiped out or discharged in the Chapter 7 bankruptcy leaving you with more money at the end of the month. There may ways to use this "extra" money that is available after your unsecure debt is discharged to pay your mortgage.
Additionally, like a Chapter 13 bankruptcy, the automatic stay will completely halt the foreclosure process. But remember the bank can and will get relief from teh automatic stay so this is only a temporary solution. Although it does not provide a permanent fix, the filing of a Chapter 7 Bankruptcy can provide immediate relief if you are facing foreclosure. To learn more about how bankruptcy can save your home call our office for your free consultation.
While there are numerous circumstantial factors that could influence your case one way or the other, bankruptcy can bring foreclosure proceedings to a halt, end harassment from debt collectors, and give borrowers time to make up missed payments and reorganize their finances. In some cases, bankruptcy can also help mortgage borrowers save their homes permanently.
More information about filing a Chapter 13 Bankruptcy.
More information about filing a Chapter 7 Bankruptcy.