We are all living through something not faced in our lifetimes. Real estate values have plummeted leaving many with debt that exceeds the value of their homes. When you are in this situation, sale of the property is difficult or impossible. Along with this phenomena, many are facing decreased or loss of income making it difficult to keep up with their current mortgage payments. Foreclosures and default rates on mortgages are high.
With all these problems, people are searching for solutions. Bankruptcy may provide the relief you are looking for. This relief can come in many different forms depending on what you want to accomplish.
If you are behind on your mortgage, facing foreclosure, and you want to KEEP YOUR HOUSE, bankruptcy can provide a reasonable way to catch up on your mortgage. Often mortgage companies demand large payments toward the late payments in a short amount of time. If you are already struggling with making ends meet, this can be impossible. In a Chapter 13 bankruptcy the late portion of your payments can be paid over a long period of time, meaning your required “extra” payment can be quite small. At the conclusion of the Chapter 13 process, you will be back current and can then continue with your regular payment.
Filing bankruptcy also provides the benefit of STOPPING FORECLOSURE. When you file bankruptcy, all creditors are prohibited from attempting to collect on your debt. This includes preventing your mortgage company from moving forward with foreclosure. The length of time you are protected from foreclosure varies with the type of bankruptcy you file and your unique circumstances.
Others may be in a situation where they just want OUT OF THEIR HOUSE. Usually when a homeowner walks away from their home and mortgage, the mortgage company will sell their house. After deducting all the costs of foreclosure and sale from the sales price, the remaining amount is applied to your mortgage. If this amount does not pay off the mortgage, YOU MUST STILL PAY the difference. With home values dropping, many people will face this if they want to leave their house. Bankruptcy provides a solution to this problem. For some, they can walk away and have no further obligation to pay. For others, only a small percentage of the total is required to be paid and this amount can be spread over a long period of time.
These are just a few examples of how bankruptcy may be a solution for you.
If you are facing any of these problems, contact us today at (615)386-0075 for a NO COST, NO OBLIGATION, initial consultation with one of our Nashville Bankruptcy Lawyers.
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