You don’t want to lose your home, where your family has created so many memories over the years, but you can’t afford the mortgage right now. You have missed a few payments and now the bank is threatening to foreclose on the house. You know that you can get your finances back in order, but you’re just not sure if you have time to do it.
One option, when faced with this type of trying situation, is to use bankruptcy to delay the case. The courts will not process other cases against you if you have filed for bankruptcy, whether it is Chapter 7 or Chapter 13. They will resolve that case first because it’s considered to be the most important order of business.
Therefore, they issue an automatic stay against other debt collection efforts, including foreclosure. It does not last forever but will generally only be lifted when the bankruptcy case concludes. This tactic could buy you a few months to get things straightened out, and you and your family can stay in the home the entire time.
Additionally, you may find that bankruptcy is the solution to your financial troubles. It could clear up your debt. That could make it so you can once again afford your mortgage. For instance, Chapter 13 consolidates your debt into an affordable repayment plan that fits your budget. Even after the stay is lifted, you may be able to keep your family home.
No matter what things look like, remember that you do have options. You do have legal tactics you can use. Make sure you know how they work.