When financial troubles strike, inevitably, you start to get behind on bills, mortgages, and other payments. After a period of time, these late payments will have negative consequences like home foreclosures. For many homeowners, keeping a secure living situation is vital for future economic success. When faced with debt and a foreclosure, it is important to understand how to use bankruptcy to clear debt and get a fresh start. Contrary to popular assumptions, homeowners faced with foreclosure might actually improve credit by filing for bankruptcy.
The Pause Button
Bankruptcy might offer relief for a foreclosure judgment by allowing you to avoid unnecessary damage to your credit. Filing for bankruptcy can stop the foreclosure process by allowing you to get back on track with mortgage payments. Ultimately, even if you lose your home, bankruptcy will result in less serve consequences to long-term finances and credit scores. Since bankruptcy is designed for people to get a fresh start with finances, it has the potential to help save your home as you regain control of your debt and get back on the path of financial security.
While a bankruptcy filing does not guarantee you will keep your home, it will delay the process while the court reviews your finances and tries to develop a payment plan with your lenders. Consulting with a bankruptcy lawyer in Dayton OH can help ensure that bankruptcy is right for you and your family’s finances. In addition, legal representation will help protect your assets when possible and work to get your debt under control.