Although you don’t hear the word “foreclosure” at the rate you did a few years back when the housing bubble popped, it is still a very real problem for many Americans. Imagine losing your home after years of payments due to unforeseen circumstances like divorce, job loss, or the suffering of a medical problem. Filing for bankruptcy to prevent foreclosure is one option to consider. Whether you are considering refinancing, a mortgage loan modification or Ohio bankruptcy, be sure to speak with an experienced attorney to ensure you pursue a solution effectively.
Filing for Bankruptcy To Prevent Foreclosure
Many people assume that you must wait until your home is in the middle of foreclosure to file for bankruptcy. Although many people don’t seek help until they receive that first foreclosure notice, there are no foreclosure requirements set forth by the United States Bankruptcy Code that state you must be under an active foreclosure.
When filing for bankruptcy to prevent foreclosure, you must consider:
- Your income and debts. Foreclosure seems like an income problem, but it most often is a debt problem. Chances are you have debts like medical bills and credit cards standing in your way of making your mortgage payment. Filing for bankruptcy can eliminate these sources of debt while also working with your mortgage lender to develop a debt repayment plan that keeps your home out of foreclosure.
- Using an attorney. Both the bankruptcy and foreclosure laws are complex, it takes an expert to navigate the process. Your bankruptcy attorney plays a crucial role in evaluating your foreclosure prevention options and executing a plan to resolve your debts and get you back in charge.
- The timing. Remember that you do not need to wait until your home is in foreclosure to file for bankruptcy. Waiting for an active foreclosure could jeopardize your chances at resolving the issue in time or cause additional debt burdens through the accumulation of more penalty fees and added interest.