While it may be a bit of an exaggeration, many people believe that there is no such thing as mortgage bankruptcy. The reality is, you can get relief from your debt by filing for Chapter 7 or Chapter 13 bankruptcy. This blog post will discuss the benefits of these options and what to expect when filing for either option.
Chapter 13 Bankruptcy.
When you file for Chapter 13 bankruptcy, you will create a repayment plan between three and five years. You will make monthly payments to your trustee, who will distribute the money to your creditors. This option is excellent for people who have a steady income but find themselves struggling with their mortgage debt.
Chapter 13 bankruptcy can also help you keep your home. If you have fallen behind on your mortgage payments, the court may order the lender to accept a lower repayment plan than what is currently owed. This will help you catch up on your missed payments and get back on track with your mortgage.
After filing for Chapter 13 bankruptcy, the court will approve a repayment plan and ask all of your creditors to agree with the terms. Once an agreement has been reached, it is binding on both parties until completion or until modified by either party if necessary. The good news here is that once your mortgage creditor signs off on this plan, you will be able to make one monthly payment to the court for your mortgage, along with any other debts you have included in this plan.
After Chapter 13 bankruptcy is completed, all of your unsecured debt (e.g., credit cards) will be eliminated, and your financial situation should return to normal, or at least much better than it was before. Keep in mind that any secured debts, like your mortgage, will still be in place and must be paid back according to the terms of your repayment plan.
Chapter 7 Bankruptcy.
Filing for Chapter seven bankruptcy is a much more drastic measure but can provide much-needed relief if you struggle with debt. This type of bankruptcy will completely eliminate all of your unsecured debt but will not affect any secured debts you have. For most people with mortgages, this means that once the bankruptcy is completed, they are free to re-finance their home at a much lower interest rate and pay off their mortgage in full.
The main difference between Chapter 13 and Chapter 7 bankruptcy is that the repayment plan in Chapter 13 lasts three to five years, while a Chapter Seven bankruptcy can be completed within a few months.
So, is there such thing as mortgage bankruptcy? The answer is yes, but it depends on your specific situation and which type of bankruptcy you choose to file. Speak with an experienced bankruptcy attorney to learn more about your options and how they can help you get relief from your debt.
If you are struggling to make your mortgage payments, Fair Free Legal Services will help you make the right choices. Contact us today at https://www.fairfeelegalservices.com. We will work with you to find the best solution for your situation and help you get back on track financially.
Fair Fee Legal Services
8665 South Eastern Avenue, Suite 101 Las Vegas, NV 89123
https://www.fairfeelegalservices.com/
702-703-3333
