It may be difficult to keep a home if the bank is trying to foreclose. However, bankruptcy does provide one avenue of relief. Chapter 13 helps individuals restructure all their debts. This means individuals can pay all their debts over a three-to-five year period. Eligible debts include the mortgage on one’s home and the arrears. On the other hand, filing Chapter 7 is a stalling mechanism. Filers may be able to delay long enough to work out a deal with the mortgage company.
If you are facing Foreclosure in Topeka KS, talk to an experienced bankruptcy attorney like Joe Wittman. Bankruptcy is a complicated process, and it is best to have an attorney. The lawyer will explain that filing bankruptcy stops bankruptcy proceedings. When one files bankruptcy, an automatic stay goes into effect. This stay stops all collection proceedings, including foreclosure. The lender may file a motion for relief from the stay so the foreclosure can go forward. However, if the bankruptcy is approved, it is likely the motion will be denied.
The first step in filing bankruptcy is credit counseling, from an agency approved by the bankruptcy court. Individuals must have a steady income to file Chapter 13. That is because a large portion of the debtor’s disposable income goes toward a repayment plan. To be eligible, a total debt must be less than $1.1 million dollars. Further, debtors must have less than $384,000 unsecured debt.
Filing bankruptcy does not mean people do not repay their debts. Indeed, certain debts are considered priorities such as child support or taxes. Additionally, debtors must make regular payments on secured debts like car loans. The mortgage is a secured debt, but debtors may get some relief on arrears. There is always the chance that individuals can avoid foreclosure in Topeka KS. There are some government programs that allow people to modify the terms of their loan. Contact the mortgage company to see if you are eligible. On the other hand, one may qualify for a regular modification through the mortgage company. Talk to the bankruptcy attorney about other programs that offer relief from foreclosure.
