It might sound a little strange to be linking bankruptcy with foreclosure but consulting with a good bankruptcy lawyer may be the best way of stopping foreclosure right in its tracks. If you have missed some of your mortgage repayments and have started receiving those Notice of Non-Payment letters, you should consider consulting with an expert in bankruptcy law so the process of stopping foreclosure on your home can be dealt with as soon as possible.
Can Declaring Bankruptcy Save Your Home?
Bankruptcy is a way of stopping foreclosure so you can reorganize your finances and save your home. A Chapter 7 bankruptcy in particular may be one of the best ways of stopping foreclosure forever, but you may still risk losing your home. This type of bankruptcy is a liquidation plan that will discharge your debt and allow you a short period in which to arrange to sell your home.
If you have a sizeable equity in your home already then your bankruptcy judge may rule that you are given a longer period to sort out your mortgage. If you are desperate to save your home then you have to talk to a good bankruptcy attorney about a Chapter 13 bankruptcy as one of the best ways of stopping foreclosure so that you retain your home.
To file for a Chapter 13 bankruptcy you have to employed and have a constant source of income. What this type of bankruptcy does is it sets your payments at a fixed rate over a period of years so that you can afford your payments on a monthly basis. Be aware that you may still have to apply for a loan modification to lower your mortgage repayments to an acceptable level so you are able to handle the payment of your debt as well as your current payments.
Facing the future and stopping foreclosure is all about making the right choices for your particular set of circumstances. To help you choose the right financial and legal path, you need to speak to a professional bankruptcy lawyer so you learn as much as you can about foreclosure and stopping foreclosure before you lose your home.