In a recent interview I did with FOX, I revealed how filing for bankruptcy can help save your home.
Many homeowners are unaware that there are steps they can take after receiving a foreclosure lawsuit to save their home There are ways out, filing for bankruptcy can keep them from losing their home.
If facing foreclosure, one of the best options, according to Keenan, is filing for Chapter 13 bankruptcy.
Declaring Chapter 13 bankruptcy will automatically halt the foreclosure process, providing you with breathing space to allow you to cure your mortgage arrears over a three to five year period while making your current mortgage payments. A Chapter 13 may also protect your home from foreclosure while a loan modification is considered.
When you declare Chapter 13 bankruptcy, lenders see this as an effort to repay the debt you have and are therefore more lenient. However, the message sent across with foreclosure is relinquishing all responsibility in paying for debt after long periods of nonpayment.
While a Chapter 13 bankruptcy can remain on a credit report for roughly seven years, filers have the option to obtain secured credit cards from their banks to begin rebuilding credit.
I explained that bankruptcy laws were put into place to help people and save their homes.
Bear in mind that the main aim of bankruptcy laws is to allow people – who find themselves in unforeseen circumstances such a losing their job, over extended, unexpected medical expenses, or the death of a family’s breadwinner – a way to wipe the debt slate clean and begin anew.
If you’ve received a foreclosure notice and are unsure whether or not to declare bankruptcy, get in touch with an experienced bankruptcy attorney. Time is of the essence, the longer you wait the more fees and costs incurred by the mortgage holder you will have to pay.
