Your home undoubtedly acts as the center for many of your life’s activities. Whether you host get-togethers or simply spend time with your family, you likely have a great sense of attachment to your house as it reminds you of the many memories made there. However, financial problems could result in you facing the possibility of losing your home due to foreclosure. You may feel an immense sense of dread if your predicament does not seem to improve.
Before accepting that you will lose your home, you may wish to consider your options for stopping foreclosure. Chapter 13 bankruptcy could act as the relief method you need if you qualify and feel that moving forward with this route suits your circumstances.
Repayment plan
With Chapter 13 bankruptcy, a court-approved repayment plans allows you to have additional time to pay off your outstanding debts. When it comes to stopping foreclosure, you can utilize this method to address the payments you previously missed. However, you must also keep up with the current mortgage payments as well.
Therefore, you will need to ensure that your current income will cover these payments. This aspect will likely also need to go into consideration when you propose the length of time your repayment plan will cover. A longer repayment period may mean lower payments in addition to your current full mortgage payment.
Additional mortgages
Individuals who face financial struggles often take out second or third mortgages on their homes in hopes of lessening the financial burden. However, you could face issues if you still fall behind on payments and fear foreclosure. Luckily, Chapter 13 bankruptcy can also address these additional mortgage payments.
Often, the bankruptcy process reorganizes these payments as unsecured debt. By completing your case successfully, the court will likely completely discharge those unsecured debts as they become a lower priority. Of course, additional details of your case could play a role in whether this total forgiveness occurs.
More information
Because many bankruptcy myths exist, you may balk at the idea of moving forward with such an option. However, Chapter 13 bankruptcy can offer many benefits to qualifying parties. Therefore, you may wish to gain reliable information on this debt relief method.
Luckily, an experienced Wisconsin attorney could provide you with professional insight into this route and how well it may suit your needs. Therefore, you may wish to consider enlisting such assistance in hopes of avoiding foreclosure.
