Preventing Foreclosure through Bankruptcy
One of the primary issues that can lead to excessive debt strain is making mortgage payments on a monthly basis while staying on top of other monthly expenses and other unexpected costs. Once behind on mortgage payments, it can be extremely difficult to get ahold of your debts, quickly resulting in the lender foreclosing on your home. Fortunately, the effective use of the bankruptcy system can help you to repay your debts while saving your home from foreclosure.
At the Russell Van Beustring P.C., our experienced Houston bankruptcy attorneys are dedicated to helping clients regain control over their finances and prevent imminent foreclosure by filing for bankruptcy. To learn more about how the bankruptcy system can protect you and your home, call us today at the Russell Van Beustring P.C., for a no-obligation consultation.
Benefits for Your Mortgage
Chapter 13 bankruptcy is frequently used by individuals who have a steady income, but are unable to meet the current demands of their debt and can help debtors catch up on their mortgage without losing their home. The following are the ways in which bankruptcy can protect your home after filing:
Immediately after filing, an automatic stay will take prevent all attempts to collect debts against you, including filing for foreclosure against your home. This stay will remain in place until your bankruptcy filing has been fully processed.
In creating a repayment plan, you will be able to include the late payment which you have missed as well as all of your other non-dischargeable debts, allowing you to pay off your late mortgage payments with one manageable payment.
If you have taken out a second or third mortgage which exceeds the full value of your home, these debts may be reclassified as unsecured debts, which will not receive priority in your repayment plan. This can result in significant amounts of the debt being discharged at the completion of your plan.
By using Chapter 13 bankruptcy, you may be able to get back on your feet financially without losing your home.
If you have become overwhelmed by debt and may lose your home as a result, filing for Chapter 13 bankruptcy may be the right strategy to prevent your creditors from foreclosing on your home. For a free consultation to discuss the details of your case with an experienced Houston bankruptcy lawyer, call the Russell Van Beustring P.C., today at 713-973-6650.