Not being able to pay a mortgage or make the payments on a second mortgage can lead to fear and anxiety for any homeowner. Florida homeowners may be interested to learn how filing for bankruptcy can help in avoiding home foreclosure altogether. The type of help available and the right options for keeping a home vary according to each family’s unique situation.
One option for homeowners who struggle to make the mortgage payment each month, much less make up the late fees and arrears, is to file for Chapter 7 bankruptcy. This allows a homeowner to get rid of unsecured debt, such as credit card debt. With this debt no longer weighing homeowners down, money can be diverted toward the mortgage when the homeowner undertakes to continue paying any outstanding secured debt. Moreover, it may be possible to have mortgage arrears discharged.
Another option for a homeowner is to look into getting rid of a second mortgage. This monthly obligation can be stifling and lead to the inability to pay other debts. Filing for Chapter 13 bankruptcy can result in a discharge of a second mortgage under certain circumstances.
The bankruptcy process may be surrounded in misinformation and myths that keep homeowners at bay. However, finding out the facts may be the first step toward financial security once the right type of bankruptcy is filed for a given situation. Our website has more information about filing for bankruptcy and also how the process can help Florida homeowners by avoiding home foreclosure as they recover a sense of financial stability at the same time.