Foreclosure

When you face the foreclosure of your home, please realize there are several options available. Speak with a qualified bankruptcy attorney about your specific circumstances. The sooner you do, the more options you may have. This area of the law is complicated, and a full understanding of your situation is required to assist you in making informed decisions as you move forward.

Filing a bankruptcy petition suspends a scheduled foreclosure sale which provides you with some time to consider your next steps in regaining financial control.

Options that may be available include:

  1. Surrendering your home;
  2. Filing a Chapter 7 bankruptcy, should you qualify;
  3. Keeping your home, if maintaining regular monthly mortgage payments is feasible;
  4. Seeking a loan modification with your lender; it is advisable to speak with a qualified bankruptcy attorney as restructuring or eliminating other debts may be necessary in addition to negotiating a modification of your mortgage.
  5. Filing a Chapter 13 bankruptcy to “restructure” your debts;
  6. Filing a Chapter 13 bankruptcy to “strip away” your second mortgage, third mortgage or judicial liens, if you qualify;
  7. Filing a Chapter 13 bankruptcy to reduce or eliminate your credit card and other unsecured debt;
  8. Filing a Chapter 13 bankruptcy in order to pay back over 36 or 60 months your mortgage arrears, priority taxes and other secured debts – such as late car payments, water bills, etc.– through the Chapter 13 Trustee’s office;
  9. Other remedies may also be available.

Everyone’s situation is different so it stands to reason that no one remedy fits everyone’s circumstances.

If you are facing insurmountable debt and/or the foreclosure of your home, the Federal Government has established the Bankruptcy Court to assist you “regain” your financial control.

Information Provided By: The United States Bankruptcy Court

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