The thought of going through the home foreclosure process can be stressful and even frightening for some homeowners. It may behoove some Florida homeowners to investigate how filing for bankruptcy may act as a means to stop a home foreclosure action against them. Different types of bankruptcy can impact a pending home foreclosure situation.
Chapter 7 bankruptcy can lead to the discharge of unsecured debts. This includes overwhelming credit card debt. For many people, filing this kind of bankruptcy can free up funds to allow a family to catch up on mortgage payments and keep a home. Once bankruptcy is filed, the foreclosure action will stop while the situation is assessed in Bankruptcy Court. However, if you are substantially behind on your mortgage payments, a lender could receive permission from the court to continue a foreclosure action.
Chapter 13 is essentially a repayment plan. This repayment plan is typically a five year plan. For some homeowners, having this kind of plan in place can give them the time and the resources needed to catch up on payments and remain owners of the home.
If you want to stop home foreclosure action, the first step is to gain some knowledge of the applicable understand laws, and this is best accomplished by consulting with a bankruptcy attorney. The specifics of your individual situation and source of your debt or financial hardship will likely determine which type of bankruptcy will yield the results you want. For some, there may be no way to avoid losing a home. For other homeowners in Florida, bankruptcy can be the key to regaining financial security and keeping the roof over their heads while they do so. Our website offers more information about this topic and what we can do to help you.
