Your home is where you raise your kids. It is where you have family meals and celebrate holidays. It is where you make many of your important memories. Excessive debt and falling behind on mortgage payments can jeopardize everything. If you fall too far behind on payments, then you could lose your home to foreclosure. Is there a way to stop foreclosure and save your home?
If you received a foreclosure notice, then you might feel as if all hope is lost. Protecting your home from foreclosure may seem like an insurmountable task. Fortunately, there are ways families can keep their homes.
A Kansas City bankruptcy lawyer can review options for stopping foreclosure. Your attorney can guide you through the process of saving your home. Some of those options could include filing bankruptcy, filing for a loan modification, or filing suit against the bank. However, bankruptcy is an option that can prevent foreclosure – even at the 11th hour.
Using Bankruptcy to Stop Foreclosure
Over the past few years, the number of homeowners facing foreclosure has declined. Yet, some Missouri and Kansas homeowners are upside-down on their mortgages. This means they owe more than their home is worth. As a result, they can fall behind on their mortgage payments and suddenly find themselves facing foreclosure.
If your lender started the foreclosure process, then you are in danger of losing your home. As such, you must act swiftly to protect your home and stop foreclosure. In this situation, bankruptcy is a good solution for many families.
Filing a bankruptcy petition will trigger an automatic stay, which halts collection actions. In order to proceed with foreclosure during your bankruptcy, the lender would need to get an order from the bankruptcy court.
Can Chapter 7 Bankruptcy Stop Foreclosure?
Chapter 7 bankruptcy can temporarily delay foreclosure proceedings. This is because lenders cannot initiate or continue collection efforts on debts.
Pausing foreclosure, even temporarily, allows families to stay in their homes longer. Additionally, Chapter 7 provides certain mechanisms that may help residents keep their homes.
Can Chapter 13 Bankruptcy Stop Foreclosure?
Chapter 13 bankruptcy, which establishes a reorganization of debts, is a potential option for filers who do not qualify for Chapter 7 bankruptcy. It can help you keep your home and stop foreclosure by restructuring your debts and issuing an automatic stay. You would repay some of your debts over three to five years.
Chapter 13 allows families time to get caught up on their mortgage payments. It also gives them the option to work with creditors to pay back a fraction of some of their unsecured debts. Under Chapter 13 bankruptcy, debtors propose a repayment plan to make installments. With a bankruptcy attorney on your side, creditors may agree to reschedule your debts or discharge some of your debts completely.
If you have a second or third mortgage, Chapter 13 may allow you to remove those mortgages. Courts often grant these requests if the balance due on the first mortgage is equal to or greater than the home’s value.
When you file Chapter 13, you make installment payments to a Trustee. This means that you have no direct contact with creditors while under Chapter 13 protection. This is often a tremendous relief to individuals and families who have spent years receiving harassing phone calls and letters from creditors.
Qualifications for Chapter 13 do exist. For example, you must have a sufficient amount of income. Our attorneys can help you determine if you qualify for Chapter 13 bankruptcy.
A Kansas City Bankruptcy Lawyer Can Help Save Your Home
Even when all hope seems lost, there are ways to stop foreclosure and save your home. Before you lose your home, reach out to an experienced Kansas City bankruptcy lawyer to explore all of your options.
Families often feel helpless during the foreclosure process. That is why it is important to speak to an experienced and skilled Kansas City bankruptcy attorney at The Sader Law Firm. Our attorneys can help you save your home and protect your assets. You do not have to carry this burden alone. We are here to help! To learn more about your bankruptcy options, we encourage you to contact us. Call us at (816) 281-6349 or fill out our confidential contact form to schedule a consultation.