Do You Have to Go Through Home Foreclosure to File for Bankruptcy?
If you’ve fallen so far behind on your debts that you have no hope of keeping your head above water, bankruptcy can be the only way of getting your life back on track. However, there are many misconceptions about bankruptcy out there, some of which could keep you from taking the first step toward reclaiming your life.
For instance, you might have heard that anyone filing for bankruptcy has to go through a home foreclosure before discharging their debts. Fortunately, this isn’t true, and in fact, filing for bankruptcy can help you keep your home.
Bankruptcies & Home Foreclosures
Chapter 7 Bankruptcy
Filing for a chapter 7 allows you to discharge most unsecured debt like credit cards, medical bills, and even some back taxes. Your bankruptcy petition will also invoke an automatic stay that puts a temporary stop to any collections activities on behalf of your creditors, including home foreclosure.
While it won’t permanently keep the lender at bay, your bankruptcy can give you the breathing room you need to get your finances back in order. Since you won’t be trying to catch up on your credit cards, you’ll have money available for your mortgage payments.
Chapter 13 Bankruptcy
Unlike chapter 7, a chapter 13 bankruptcy is designed to help borrowers who’ve fallen behind on secured debts, like car loans and mortgages. This program can help you avoid home foreclosure by giving you a chance to make up missed mortgage payments through a court-approved payment plan, which makes it a great option for those whose financial problems were only temporary.
If you’re struggling to keep up with your debts or facing a home foreclosure, Robert A. Schwartz can help you get the financial relief you need. As a skilled Rochester, NY, bankruptcy attorney with over 30 years’ experience, you can rely on this skilled professional to identify all your options and help you select the path to reclaiming your life from debt. Call (585) 351-2929 to schedule a consultation today. For more financial advice and legal tips, follow the law firm on Facebook now.
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