The possibility of foreclosure can be one of the scariest situations any homeowner can face. When faced with foreclosure, most homeowners immediately start looking for anything that could help them save their homes. For people in overwhelming debt, bankruptcy is often seen as a last resort, but bankruptcy is designed to be of assistance to those in massive debt beyond their means.
Stopping Foreclosure in Georgia or Tennessee:
People facing foreclosure on their homes can turn to Chapter 13 bankruptcy for help. However, it is a complicated process, and it does have consequences for the filer’s credit report. Georgia and Tennessee residents considering filing Chapter 13 bankruptcy to save their home from foreclosure should be aware of the various restrictions involved.
Bankruptcy as a Protection Against Foreclosure:
Bankruptcy law can look like a lifeline to homeowners facing the stressful and life-altering process of foreclosure. While Chapter 7 bankruptcy is designed to create a way for people to sell their assets to get out from under overwhelming debt, Chapter 13 bankruptcy is different. Chapter 13 bankruptcy is intended as a means of keeping property for the long-term using a bankruptcy court-managed repayment plan.
Bankruptcy: Not a Quick Fix
Bankruptcy is a serious process and shouldn’t be considered a quick fix. The bankruptcy process is full of complicated legal requirements, and eligibility standards, and receiving a bankruptcy discharge has lasting consequences for the filer’s credit profile. However, working with an experienced bankruptcy attorney can ensure that you accurately determine whether filing bankruptcy is a good idea in your situation – or not.
Filing Chapter 13 to Keep Your Home and Avoid Foreclosure
Chapter 13 bankruptcy is often referred to as the wage earner’s plan, and it can be a good solution for those who are buried in debt but still have a steady income. Chapter 13 bankruptcy does not hinge on eligible assets being sold off to pay the debt. Instead, Chapter 13 bankruptcy allows petitioners to agree to a three-to-five-year repayment plan (depending on their level of income). By following the repayment plan and all the predetermined conditions of the Chapter 13 bankruptcy, the filer can receive a discharge of the remaining debts included in the plan. Most importantly for those facing foreclosure, the Chapter 13 bankruptcy can end with the filer’s homeownership intact since the repayment plan can incorporate missed mortgage payments. By incorporating the missed mortgage payments into the repayment plan, the Chapter 13 bankruptcy gives homeowners the chance to bring their mortgage current with the lender.
If you have questions about filing Tennessee or Georgia bankruptcy to help stop a foreclosure on your home, contact an experienced bankruptcy attorney. Don’t hesitate to call Kenneth C. Rannick, P.C., Tennessee, and Georgia bankruptcy attorney. We help good people through bad times.