Foreclosure concerns can be one of the most significant worries on the minds of struggling homeowners. Personal bankruptcy options are one option to consider which can potentially help with foreclosure and other concerns facing homeowners and other consumers struggling with overwhelming debt.
Chapter 13 bankruptcy
Chapter 13 bankruptcy may help with foreclosure through the repayment plan process. Chapter 13 bankruptcy is considered a reorganization bankruptcy. It permits the filing party to reorganize their debt which is usually then repaid over a more manageable span of time, typically 3 to 5 years. The filing party works out a repayment plan with the help of the bankruptcy court. At the end of the process, if the filing party has complied with the repayment plan, they can enjoy a debt discharge and debt relief.
How it can help with foreclosure
How this may be able to help with foreclosure is by allowing the filing party to include missed payments on their home in their repayment plan to get caught up and remain in the home. In addition, a bankruptcy protection options carry an automatic stay which immediately halts creditor collection actions during the length of the bankruptcy process. Chapter 13 bankruptcy is best for a filing party with a reliable source of income.
Other personal bankruptcy options may also be able to help with foreclosure concerns in different ways. Personal bankruptcy options are universally available to help struggling consumers with the stress and worry associated with overwhelming debt. For this reason, homeowners and others considering bankruptcy protection should be familiar with the different options available, what they may be able to do and what it takes to qualify for each.