Chapter 13 Bankruptcy Information for People Facing Foreclosure
Chapter 13 Bankruptcy Information for People Facing Foreclosure
When you stand to lose your home to foreclosure, it may be wise to consult with an attorney about filing Chapter 13 bankruptcy. Now, this isn’t a decision to made be taken lightly, but it may be your last resort if your mortgage lender is unwilling to negotiate.
Chapter 13 bankruptcy does not wipe out your debt, but instead, reorganizes it in a manner that will allow you to repay it over time. Once your Chapter 13 bankruptcy has been granted, you will have to pay a set amount of your wages to your creditors each month. A Chapter 13 bankruptcy usually last for 3 to 5 years, but the time varies according to what is agreed upon by your creditors and approved by the court.
Throughout the bankruptcy, you will have to keep current on your mortgage, but you don’t have to worry about the constant hassling of creditors and your debt cannot be increased. You will have to attend debt counseling, and you must stick to your repayment plan. Failure to do what is required of you will cause your bankruptcy to be dismissed and you will lose your home. Chapter 13 bankruptcy may be a solution to your foreclosure dilemma, but it should only be exercised if all other options become unavailable to you.
