Foreclosure Woes: What are Your Rights?

Foreclosure Woes: What are Your Rights?

You know that trouble is waiting for you month after month as you fail to come up with the money for the mortgage once again. You may try to negotiate with the bank directly, to no avail. Or you may just keep hoping that things are going to turn around for you financially and you’ll be able to catch up on the payments.

Eventually, time runs out and you are out of options. You get the notice that the bank is going to begin foreclosure proceedings against you. You may feel like you’re at the end of the line. But you’re not! In fact, you still have rights and options, and filing for bankruptcy is one of them. A Gilbert bankruptcy attorney may be able to help you save your home – or simply walk away from it with a cleaner slate than you would have if you let it fall into foreclosure. First, you need to decide what your goals are for the home.

Worried married couple with financial problems with a foreclosure letter

Chapter 7 Bankruptcy

You may decide that you don’t want to stay in the home. Maybe the home has fallen below the value it once had, or maybe you just feel like maintaining it is more trouble than its worth. Maybe you just know that you aren’t going to be able to keep up with the payments in the future. So you’re ready to walk away.

If you can qualify to file for Chapter 7 bankruptcy, you may be able to have all of your unsecured debts discharged, and you may be able to discharge any debt that you owe after the house is sold in foreclosure. Typically, you would owe what was left over after the foreclosure auction. However, since you no longer own the home, there would be no more asset for you to draw on to pay what you owe. You can walk away free and clear.

Filing for bankruptcy in conjunction with foreclosure can help you to recover your credit more quickly after the dust settles. In addition, the foreclosure process will be much longer with a bankruptcy filing in play, and that will give you more time in the home, which will give you more time to figure out your next steps.

Chapter 13 Bankruptcy

If you decide that you want to keep your home, you have two options: Get caught up on the payments within a certain amount of time or come up with all the money left on the loan and pay it off. Since you are struggling to make your monthly payments, both of those options may seem impossible.

If you file for Chapter 13 bankruptcy in Gilbert, you can put your debts into a debt repayment plan that you can afford, and that can give you the option to catch up what you owe on the mortgage. You will have more time to get caught up, and you’ll do it on a payment plan that actually fits your budget.

At the end of your Chapter 13 repayment plan, which is usually three to five years, you may also be able to discharge any debt you have left. Chapter 13 bankruptcy also allows you to “strip off” second mortgages that may be valued more than your home. Your Gilbert bankruptcy attorney will look at your mortgage and let you know what’s possible.

Hiring a Bankruptcy Attorney

The specter of foreclosure can be intimidating and overwhelming. Don’t let it scare you into inaction. Call a bankruptcy attorney to learn how you might be able to save your home from foreclosure or how you might be able to exit the process cleanly with the help of bankruptcy.

Gilbert Bankruptcy Lawyers is ready to help. A bankruptcy attorney from our team will analyze your finances and help you understand how Chapter 7 bankruptcy or Chapter 13 bankruptcy can help you, depending on your circumstances. An attorney will talk to you about your goals and will help you determine the best strategy for maximum debt relief while still meeting your goals. We want to help you get the maximum debt relief possible. Call our bankruptcy law office in Gilbert today to schedule a consultation with an experienced bankruptcy attorney and learn more about your options.

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Gilbert Bankruptcy Lawyers
Office: 480-448-9800