Just hearing the term “foreclosure” frightens people. Unfortunately, with the pandemic continuing to affect our lives and livelihoods, I know the thought of foreclosure is scarier than ever. No one should have to worry about their house being foreclosed, especially after the recent years of unavoidable financial hardship we’ve all experienced. Fortunately, there is a way to stop foreclosure. In fact, as a foreclosure attorney Memphis relies on, I’ve helped thousands of clients keep their home with bankruptcy.
No matter how many months you are behind on your mortgage, filing for bankruptcy can help you get out from under crushing debt and keep your house.
How bankruptcy can stop foreclosure in its tracks
Another term that frightens people is “bankruptcy.” Due to a lot of myths and misconceptions, most folks view bankruptcy as something that will make a rough situation even worse. In reality, bankruptcy is a lifeline. It can help you get out of a never-ending debt spiral, keep your property, and finally allow you the breathing room to get your financial life back on track.
In terms of foreclosure, there are a number of bankruptcy options that can help you keep your house. Most people file for a Chapter 7 or a Chapter 13, depending on their unique situation. Both can put a stop to foreclosure. Here’s how:
- Chapter 13 is a debt reorganization plan. This means that your debts and past-due payments are lumped into a repayment plan. You will make only one affordable monthly payment over a period of 3-5 years. You can create a payment plan that includes overdue mortgage payments. As long as you comply with the payment plan, your lender cannot foreclose on your house. Chapter 13 may also give you leverage to negotiate more affordable payments with your mortgage lender moving forward.
- Chapter 7 allows you to get rid of debts like credit card bills and medical debt without paying them back. Wiping out other debt can help you catch up on past mortgage payments.
The advantage of Automatic Stay
One of the greatest benefits of applying for Chapter 7 or Chapter 13 bankruptcy is the fact that you are granted an ‘automatic stay’. This means the moment you file for bankruptcy, all mortgage companies who were trying to foreclose your home must immediately stop harassing you. This means you can instantly be free from the worry that your home will be foreclosed as you plan out how to pay back your debts.
Explore your options with a foreclosure attorney Memphis relies on for FREE
Stop the fear of foreclosure and consider filing for bankruptcy today. Our team of experienced foreclosure attorneys are here to help you every step of the way. Contact us online or call (901) 327-2100 for a FREE consultation. There’s no obligation to move ahead with filing. We’re here to offer advice and discuss your options.
If you do decide to file, we can set up a plan that works for you and your family.
If you’re struggling financially, know that your home does not have to be foreclosed. With the power of bankruptcy, you no longer have to fear losing the house you call home. Give us a call today.