You are not alone if you’re dealing with the stress of worrying about losing your house to foreclosure. Foreclosure is a discouraging reality for many people in Minnesota and across the country, and it can be hard to deal with on your own.
If you’re trying to figure out how to avoid losing your home in foreclosure, we have some great news: there are ways to protect yourself from this possibility. One of them is by talking to an experienced bankruptcy attorney about filing for bankruptcy, particularly in Chapter 13.
Bankruptcy can allow you to get back on track financially and stop the foreclosure process, so you don’t lose your home. It also gives you time to get back on your feet while keeping your assets intact.
This article explains how an experienced bankruptcy attorney can help you avoid losing your home in foreclosure and regain control of your financial future.
What Happens During Foreclosure?
Foreclosure is a legal process that can result in the loss of your home. It happens when a lender (the bank or mortgage company) takes back possession of the property after defaulting on a mortgage, which means you stopped making payments on your loan.
Your lender begins the process by sending a notice of default to you. A default means you’ve missed payments on your loan, so the bank is taking steps to get their money back.
How Can Filing for Bankruptcy Save Your Home from Foreclosure?
Once you file for bankruptcy, the court issues an automatic stay, preventing creditors from taking action against you or your property. This includes foreclosure proceedings.
- Chapter 13, or reorganization bankruptcy, should enable you to save your home by putting you on a payment schedule in which all of your bills, including your mortgage, are combined into one easy payment that you’ll usually have three to five years to pay. Chapter 13 plans allow homeowners to keep their houses while making up missed payments.
- Chapter 7 is a liquidation bankruptcy. This means that a person’s assets will be sold, and the proceeds will be applied to pay off debts.
If your circumstances merit Chapter 7 bankruptcy, you may not be able to keep the property. Still, you will be able to eliminate several expenses in addition to your mortgage payment, such as credit card bills, medical bills, utilities, and other expenses. This way, you’ll be given a fresh start.
Contact Hoverson Law Offices, P.A. to Learn How to Save Your Home from Foreclosure
We recognize that filing for bankruptcy isn’t always easy, but it doesn’t have to be completely scary. Our Minnesota attorneys at Hoverson Law Offices, P.A., are here to help guide you through everything so you can focus on getting back on track without worrying about losing everything else along the way.
We target Minneapolis, Bloomington, and the surrounding Minnesota communities.