If you're facing Highland county foreclosure, a bankruptcy lawyer can help. Typically, foreclosure starts once a homeowner falls behind in their mortgage payments. Filing for Chapter 7 bankruptcy may delay the proceedings for a few months, but it won't stop them indefinitely. In order to keep your home, you'll likely want to file for Chapter 13 bankruptcy. Let's explain the difference and what a bankruptcy lawyer can do for you.
Chapter 7 bankruptcy cancels all debt secured by the home such as mortgages and home equity loans. While it forgives debt, it doesn't lift the lien. Your Highland County foreclosure will likely be delayed for a few months by court processes, but it only puts it off. It doesn't solve the problem. It's not a get out of jail free card. To walk away from this clean, you'll need to pay back your debts.
If you want to stay in your home for the indefinite future, Chapter 13 bankruptcy provides a real solution. It effectively allows you to propose a payment plan to pay off all the missed debts. The plan will need to be approved by the court, so be realistic. Remember, you'll have to pay off the missed mortgage payments as well as the current mortgage payments. Assuming you make the payments and complete the repayment plan, you'll keep your home and avoid Highland County foreclosure.
Chapter 13 bankruptcy can eliminate second or third mortgage payments. If your first mortgage is secured by the value of the home, you may lack the equity to secure the second or third mortgages. These become recategorized as unsecured debt, which takes a backseat as the last priority. Often, you end up not having to pay these debts back at all, and they are forgiven.
Obviously, Highland County foreclosure and bankruptcy will hurt your credit score. At the same time, bankruptcy may provide the best path to rebuilding your credit. Foreclosure will damage your credit for a long time without erasing your debt, putting you in a position of bad credit and plenty of debt, a dreadful path. While bankruptcy will harm your credit, it allows you to rebuild your score much faster than a foreclosure. It erases your debt and leaves you solvent, putting you back on the path to rebuilding your credit. Bankruptcy may hurt credit ratings, but it also erases your debt.
If you're facing Highland County foreclosure, talk your options over with a Warren Law Firm bankruptcy lawyer. Your first consultation is free. The path to a new future begins with a simple phone call.
Let Michael Warren and Warren Law Firm help you get back on track.
We'll answer your Questions, dispel the Myths and help you determine whether Bankruptcy is right for you.
Check-out our Brochure for even more information about Warren Law and the bankruptcy process.
