How Bankruptcy Impacts Homeowners Facing Foreclosure
One of the first questions people ask when they begin looking into bankruptcy and debt relief is: What will happen to my home? Many of us are haunted by images of families kicked out by banks with nowhere to go, particularly in the wake of recent recessions and national foreclosure crises.
At NextStep Bankruptcy Law, we understand this stress, and we are here to advocate for you and get the best possible outcomes from this new step in your financial life. We are here to provide the help and guidance you need. Call 312-667-7717.
What To Expect Going Forward
One of the first things that happens when you file bankruptcy is that the courts put a stay on any foreclosure actions. This means that any foreclosures come to a stop, even if a sale has already been scheduled, until the court has time to fully assess your case. For many, this is a much-needed respite from frantically trying to repay loans or getting seemingly endless calls from the bank. Once the stay is in place, bankruptcy laws come into play.
The Bankruptcy Code handles mortgages differently, depending on the type of filing you have in place and what types of protections you qualify for. If you are filing bankruptcy under Chapter 7, the courts generally will include your home in liquidation proceedings that will go toward your debt. If you are filing under Chapter 13, you are not necessarily eradicating your debt. Instead, your debt is restructured, and this can give you an opportunity to keep your home under certain terms. Every case is different, and our attorneys can advise you on what to expect in your specific circumstances.
Get Personal Advice From Compassionate Attorneys
NextStep Bankruptcy Law focuses exclusively on consumer bankruptcy and debtor protections. We know your rights and can help you protect your family throughout your debt relief journey. Let’s sit down and talk about your home, your needs and your future.