Every year, millions of American homeowners fall behind on their mortgage payments. When their banks and lenders begin to threaten to come after the property, homeowners are terrified that they could lose their place to live. An underwater mortgage can lead to foreclosure and harassing calls from debt collectors. Fortunately, bankruptcy is a powerful solution that can save your home from foreclosure.
How a Dayton Bankruptcy Attorney Can Help
A Dayton bankruptcy attorney can bring the foreclosure process to a halt by helping you apply for bankruptcy. This essentially buys you time and gives you the opportunity to reorganize your finances and regain your financial footing. It’s not uncommon for bankruptcy to help someone permanently save their home. However, the hard work of financial responsibility moving forward is certainly in the hands of the homeowner.
How can your bankruptcy attorney help? Simple: by helping you file for bankruptcy. The process of filing alone is enough to stop the process of foreclosure. In fact, lenders aren’t even legally allowed to try to collect payments until the court permits them. This protects you from harassing collection attempts as you try to recover financially.
The two options for bankruptcy present different solutions. If you file for a Chapter 7, this will likely result in the liquidation of your non-exempt assets. The money gained will be used to pay off the remainder of the mortgage. It’s crucial to work with an attorney in this case because they can file for exemption for some of your assets. In other words, they can prevent some of your belongings from being liquidized.
On the other hand, a Chapter 13 is often more effective in this case. The income-based budget and payments will be made to trusties to pay off secured debt. This means that if you stay faithful to your payments, you can keep you home despite the bankruptcy.