If you and your family are close to losing your home, then you might be feeling a lot of panic. This can be a terrifying situation to be in, and you might fear that all hope is lost. You could be willing to do just about anything to keep your home. One option that you might want to look into a little more is bankruptcy. Although the idea of filing bankruptcy might be terrifying for you, it could be the step you need to take so that you can keep your home.
It Can Help You Stop Collections Activity
First of all, if you file bankruptcy, you might be able to stop all collections activity against you. If your home is currently in foreclosure, for example, filing bankruptcy is a way to put a stop to the foreclosure, at least for now. If you file Chapter 7 bankruptcy, then you may still have to give up your home. However, you might be given a little more time to figure out alternative arrangements for you and your family.
If you file Chapter 13 bankruptcy, then you might be able to keep your home. Through your bankruptcy plan, you will be given the option to get caught up on the payments that you are behind on, all while getting caught up on your other debt, too. As long as you make the payments in accordance with your Chapter 13 bankruptcy plan, then you shouldn't have to worry about losing your home.
If you are a renter, matters are a little different. In many cases, filing bankruptcy will help protect you from eviction, at least temporarily. You may be able to sort things out with your landlord during this time, or you will at least have more time to find another rental.
It Can Make it Possible to Get Caught Up on Your Rent or Mortgage
Even if you aren't currently in foreclosure or facing eviction, you might be concerned about losing your home because you are struggling to keep up with your monthly payments. Filing bankruptcy might help with this. With Chapter 7 bankruptcy, many of your debts might be wiped away completely, so you may have more money in your budget to pay your mortgage payment or rent. With Chapter 13 bankruptcy, your debts will typically be restructured so that you can pay them off in one monthly payment. Again, this can help leave room in your budget so that you can continue to pay to keep a roof over your head.
For more information, contact a bankruptcy lawyer like the ones at Martinez Law Firm.Share