Each year, there are many homeowners who are confronted with acute financial issues, which ultimately impact the frequency at which they make their mandatory monthly payments. After missing a few consecutive payments, they contact their lender to see if they can change the terms of their mortgage contract to prevent a foreclosure process from being initiated. If denied, they turn towards the people they know to collect money that they then intend to use to make up for the missed payments. The problem with these two strategies is that their effectiveness can hardly be guaranteed. This article discusses when you can use chapter 13 bankruptcy to avoid foreclosure.
Foreclosure letters are the worst nightmares of homeowners
As a homeowner, you will certainly agree that there's nothing scarier than getting a foreclosure letter in the mail. This is especially true when you know that your financial freedom is restricted. If you intend to file for chapter 13 bankruptcy, then you must first consult with a qualified bankruptcy lawyer to ensure that you're eligible. When reviewing your case, you can expect the legal professional to ask you a few questions concerning the resources that you plan on using to preserve your house. Depending on your answers, they may or may not advise against that debt relief option and propose another.
Chapter 13 bankruptcy is the best option when dealing with missed payments
Before considering bankruptcy, it's essential to determine if it will allow you to solve all of your financial woes. In fact, unless you have the financial ability to make scheduled payments on a monthly basis, your bankruptcy attorney will strongly discourage you from filing for this debt relief option. While it's understandable that you want to keep your house, the costs that are associated with your decision must be sustainable.
The main purpose of chapter 13 bankruptcy is to enable you to retake control of your finances by reducing the level of pressure under which your mortgage contract and other related obligations were putting you.
When used appropriately, chapter 13 bankruptcy fosters proper financial management, and thus helps applicants keep the title of their homes. If you used to view bankruptcy in a negative way, you must now have a different perception of this debt relief option after reading this article. So make the right decision today and call an attorney with deep knowledge of chapter 13 bankruptcy to find out how they can help you retain your home title. For more information, contact a business such as Baudler, Maus, Forman, Kritzer & Wagner, LLP.Share
4 June 2015
Although many people don't think of having legal counsel as improving their life, I have found that it has really helped me to feel empowered as a business owner. Without my lawyer, it was really difficult to figure out what I could say and what I couldn't say, and it really made things hard when I was out and about trying to make business deals. Fortunately, after I found the right lawyer, things became a lot more straightforward. This blog is all about improving your life and streamlining your business with the help of a great lawyer. After all, you never know when you will find yourself in court.