How We Help Our Clients Stop a Foreclosure In Delaware County, Ohio
If your home is being threatened by foreclosure, you may have many concerns. Moving takes time. You may be emotionally attached to the property. There may be other complicated issues beyond just the money about which you are deeply concerned.
Bankruptcy is an Option
If you aren't prepared to simply do a quick sale of the property -- or have tried that route and failed -- than it may time for legal remedy. Bankruptcy is legal remedy that can may stop or delay the foreclosure.
Filing for bankruptcy is not a decision to be made lightly. It can impact your finances for years to come, but if things are already a mess you may already be facing a situation that will negatively impact you for many years. If the bankruptcy reduces the negative impact on your life, then it may be your best answer.
When you file for bankruptcy, the courts will issue an automatic stay. This means your creditors have to stop bothering you for the time being. They can no longer insist on collecting payments. They aren't even supposed to contact you during the legal stay.
If your home was in the process of being foreclosed upon, the stay will include stopping this process. The bank will have to stay its hand and you will be given some breathing room to sort out your affairs.
How much breathing room and the exact course of action involved will depend in part on the type of bankruptcy you are filing.
Chapter 13 Bankruptcy
If you wish to keep the family home, you should be filing for Chapter 13 Bankruptcy. If granted, this type of bankruptcy allows you to make a payment plan to repay your arrearage (your accumulated late mortgage payments) over the course of five years.
During that time, you will also need to keep current with your normal mortgage payments. So you need to be confident you can cover both sets of payments.
However, the payments for the arrearage will not include late fees, interest or other penalties. Interest and other fees can add a tremendous financial burden, so these payments may be smaller than you think. Speak with an attorney before you decide whether or not you can afford to cover the arrearage.
Chapter 7 Bankruptcy
This type of bankruptcy usually does not allow you to keep the family home. It usually only buys you some time to make arrangements to move.
The foreclosure will be temporarily stayed but the lender will most likely file a Motion for Relief from the Automatic Stay. If the court approves it, they can then resume foreclosure proceedings.
Typically, you will get at least 45 days extra to deal with arranging to move. In some cases, this may even buy you enough time to complete a quick sale, thereby avoiding an ugly black mark of a foreclosure on your financial record.
Wood & Brewer Bankruptcy Attorneys have decades of experience to help you navigate your financial situation. We invite you to contact us today to schedule your free consultation.