The thought of losing a home due to financial difficulties is often a homeowner’s worst nightmare. While the home foreclosure process can be scary and overwhelming for many, knowing the options and possible ways to halt or delay a home foreclosure may help countless homeowners weather a financial storm. Any Florida homeowner concerned about a potential home foreclosure is entitled to get the facts and explore the options available to confront the underlying issues.
Chapter 7 bankruptcy aids homeowners in the process of discharging many types of debts. Under this type of bankruptcy, the home may be sold, although there is a homestead exemption that may apply and could keep the property out of the hands of creditors. As Florida has a liberal homestead exemption, it is worthwhile to investigate whether a home may be exempt.
Chapter 13 bankruptcy is different in many ways and may be a more viable option for some homeowners. If a homeowner is behind in mortgage payments, a repayment plan approved through Chapter 13 bankruptcy may help those behind catch up. The repayment plan usually covers a period of two to five years and may help homeowners get back on their feet.
Home foreclosure in general can be confusing and the thought alone can add more stress to an already stressful time. Knowing if bankruptcy may work best for any given situation — and what type — is vital for those who are focused on moving forward and keeping their Florida homes also. Our firm website has information about the different bankruptcy options and also an explanation of how bankruptcy may help homeowners avoid home foreclosure.