Facing foreclosure1 can be one of the most stressful and anxiety-producing things that can happen in a person’s life. If you are like most homeowners, your home is the largest investment you have ever made in your life and represents much more than the physical house in which you keep your things and live.
People get behind on their mortgage payment for a variety of reasons, including unexpected illness, the loss of a job, an accident, poorly performing investments, an increase in your payment, or overutilization of credit. Whatever the cause of your financial problems, it is important to understand that foreclosure is not always unavoidable, and there are certain things that homeowners can do to prevent foreclosure even if they have fallen being on their payments.
How Can Chapter 13 Help?
Chapter 13 Bankruptcy2 is a type of bankruptcy that allows a debtor to reorganize his or her debts and make one monthly payment to a bankruptcy trustee for a period of three to five years. While you are making payment according to the terms of your plan, you are protected from any collection activity from creditors, including foreclosure.
In Chapter 13, you can take include the arrears on your mortgage in your payment plan, which immediately gets you current on your mortgage. Best of all, you have the entire term of the payment plan to get caught up.
Importantly, however, you need to stay on top of your current mortgage payments while you are in Chapter 13 to avoid foreclosure. For this reason, Chapter 13 is most appropriate for debtors who earn regular income that is sufficient to pay both their Chapter 13 payment and their mortgage payment each month. When you meet with an attorney, he or she will thoroughly evaluate your case and determine whether you qualify for Chapter 13 and if it would an advisable option to pursue in your situation.
Contact a Salt Lake City Bankruptcy Lawyer Today
If you are facing foreclosure, you should discuss Chapter 13 bankruptcy with an experienced attorney as soon as you can. To discuss your situation with one of our lawyers, call JLT Law today at (801) 896-9444 or contact us online.