Property mortgage problems are often associated with default and foreclosure of the home if you are attempting to buy it. While filing for bankruptcy is the last resort when it comes to handling financial challenges, some property owners file for bankruptcy in attempts to stop foreclosure from taking their homes away.
Bankruptcy can erase most of or all your debts in some situations. But property owners seeking bankruptcy should relinquish items that have lagged behind in terms of payments. This could include homes and vehicles. The bankruptcy process may offer the means to retain your home if you follow some specific processes.
Generally, this requires a lot of research and guidance from an Orlando bankruptcy attorney or any other expert in these matters. Additional information and guidance available online could also help you understand whether or not filing for bankruptcy will solve your home mortgage challenges. It’s also important to disclose all your revenue and sources of income.
Filing for bankruptcy in time can delay foreclosure. An Order of Relief can be issued by a bankruptcy court through a Chapter 7 or Chapter 13 bankruptcy to ensure that your property isn’t taken. This order offers an automatic stay that prevents creditors from seizing homes and assets such as land.
All foreclosure sales shouldn’t proceed without a court order. That means you are protected from the final sale. If you plan to file for bankruptcy, make sure that you file the case and get it finalized before your creditors can seize your assets.
Type of bankruptcy and home mortgage
Filing for bankruptcy while having an overdue mortgage or entering into foreclosure might interfere with the proceedings. Therefore, it is important that you follow the right procedure when filing your case. Note that Chapter 7 bankruptcy is a great option for couples or individuals who don’t have enough disposable income to take care of their debts.
The Chapter 13 bankruptcy for people with enough disposable income that can pay off their debts either partially or completely. You can take the means test to find out if you qualify for this bankruptcy option. Also, having a good attorney on your side can help you learn the terms and conditions and make the right choice.
Sometimes, complications arise especially for individuals using bankruptcy cases to stave off possible home foreclosures. For instance, a debt collector can bring to court a motion to lift the automatic stay. This will lift all the measures taken to keep your creditors from seizing your home and other assets due to the mortgages, unpaid loans, and other debts.
Note that filing for bankruptcy might protect your assets for a couple of months. If the case isn’t finalized in time, financial institutions might proceed to seize your property. Therefore, it is advisable to file for bankruptcy at the right time and ensure that it is finalized in time. One way of achieving this is by working with an experienced attorney.