Part of a mortgage contract says that the house is used to secure the loan. This means that, when someone stops making payments on their mortgage, the bank can take over ownership of the home to compensate themselves for the loan debt that is not being paid. If you’re struggling to keep up with your bills and simply can’t manage to get up to date on paying your mortgage, though, it doesn’t mean that you have to give up hope. If you’ve received a notice that the bank intends to foreclose, your first move should be to consult with a Chapter 13 Bankruptcy Attorney to find out whether those proceedings are an option for you.
Going to a Chapter 13 Bankruptcy Attorney doesn’t mean that you’re trying to escape the debts that you legitimately owe. In the bankruptcy system, this version is designed to help people to set up a payment plan that allows them to catch up on paying their creditors, and often includes restructuring the debt to make it easier to pay. This does sometimes include a discount on the debt, but can also involve simplifying the payment arrangements, changing the length of time available to pay, and adjusting interest rates to make it possible for someone to make headway rather than struggling to keep up with the interest being added each month.
The final details of the arrangement will depend on a judge, but simply filing for relief with the help of a Chapter 13 Bankruptcy Attorney provides you with a great deal of protection. It puts a stop to foreclosure proceedings and also gives you protection from harassment by creditors. To know for sure whether you’re eligible for it, you need to set up a consultation with a lawyer who can go over your finances and provide personalized advice.
Laura Margulies & Associates LLC has been recognized by Congress as a Debt Relief Agency and is proud to help people who need to seek relief under the bankruptcy code. Even if you’re uncertain if you’re eligible to take this path, you shouldn’t be afraid to set up an appointment and to make sure that you have an accurate impression of where you stand.