Can I Save My House by Filing for Bankruptcy?
Home ownership remains part of the American dream. Most people work hard for several years before they are in a position to purchase a home. If that dream is threatened because a homeowner falls on financial hard times it can be devastating. If you are at risk of losing your home because you are struggling financially, bankruptcy may be a solution. Often, a debtor is able to save his or her home using the protection offered by filing for bankruptcy.
Most homebuyers take out a mortgage loan when purchasing a home. The debtor then makes a monthly mortgage payment until the loan is paid off, usually 15 or 30 years. At any time during the repayment period the lender can initiate foreclosure proceedings if the borrower defaults on the loan. In recent years the number of foreclosure actions has reached historic levels because of the recession faced by the country as a whole. If you have been notified by your lender that foreclosure has been initiated, or will be in the near future, you must act fast to save your home. Unless you are able to bring the past due payments current in a short period of time, you may need to consider bankruptcy.
Filing for bankruptcy can provide both immediate relief from foreclosure and a long-term solution to the threat of foreclosure. When you file your petition for bankruptcy the court will issue an automatic stay order. The automatic stay order prohibits all creditors from any further action to collect on a debt, including foreclosure action. This may only be a temporary fix as the lender can ask for the stay to be lifted down the road.
In the long run, bankruptcy can help by relieving the pressure on your finances and/or providing you with additional time to catch up on your past due balance with the lender. In a chapter 7 bankruptcy, most other debts will be discharged, or eliminated, freeing up funds with which to pay your mortgage. In a chapter 13 bankruptcy your mortgage debt will be included in the repayment plan you develop. The repayment plan gives you an extended period of time (usually three to five years) within which to bring your debts current.
If you are being threatened with foreclosure, contact an experienced Kentucky bankruptcy attorney right away to discuss whether bankruptcy is right for you.
The bankruptcy attorneys of Musselwhite Meinhart & Staples, PSC have over 50 years of combined legal experience handling bankruptcy cases. This experience has enabled the attorneys to achieve the best possible results for their clients time and time again. Your case is important to you; therefore, it is important to us. We represent clients in Hardin County, Jefferson County, and surrounding counties from our offices in Radcliff and Elizabethtown and Louisville.
Contact us at (270) 351-6069 or 1-800-754-HELP to schedule a free consultation with one of our attorneys. You may also contact our office through our convenient online contact form. We look forward to meeting with you to discuss your legal options.