Many homeowners in Florida are still having trouble with paying their mortgages after the housing market collapsed due to the recession. Getting behind on house payments can cause a myriad of issues, such as creditor harassment and the initiation of foreclosure proceedings. If you want to keep your home, filing for bankruptcy could help.
It should be noted that it is necessary to be caught up on mortgage payments in order to keep your home, regardless of whether you file Chapter 7 or Chapter 13. If you believe that you will be able to get caught up quickly, then it might be beneficial to file for Chapter 7, if you qualify, since it could wipe out unsecured debts, such as credit card balances. This could free up the income you need to make your payments and keep your house.
If you are too far behind to catch up under the rules of that chapter, filing for Chapter 13 bankruptcy could be the best option, again, if you qualify, and if you have a steady income. Under your repayment plan, you could be given up to five years to get current with your mortgage loan payments. A Florida bankruptcy attorney can help you determine which chapter would provide you with the most benefits — depending on your financial circumstances and the results of the means test.
If your payments are automatically deducted from an account, it is up to you to make sure that you remain current — since those payments could stop coming out of your account once you file. Furthermore, if you get behind on your payments after filing, your lender can petition the court to resume foreclosure proceedings. Therefore, it is important to make sure that you are not behind on house payments at any time during the process.