Foreclosure is a legal process that can result in your mortgage lender taking the collateral you used to secure your loan. If you have missed one or more monthly mortgage payments, your lender may refer your loan for foreclosure. Fortunately, you don’t have to move out of your house just because your lender tells you they are prepared to foreclose. An experienced bankruptcy attorney from Dodge City KS Law Services can explain your rights and tell you how filing Chapter 13 bankruptcy can help you save your home.
Unlike Chapter 7 bankruptcy, Chapter 13 allows people who are in debt and are facing losing their home to foreclosure to take control of their finances and organize their payments so they are able to keep their property. If you have enough resources to make your monthly mortgage and car payments, you can keep your home and your automobile throughout your bankruptcy case as long as you make the payments on time every month.
Bankruptcy allows you to catch up on missed payments over an extended period of time. Most people are allowed three years to catch up on late payments and get their mortgage loan into a current status. Credit card bills and other unsecured debts can also be paid under an extended payment plan. The interest rates may also be adjusted during the bankruptcy to make them more affordable.
Many people who choose Chapter 13 instead of Chapter 7 do so because they want to keep their home. In exchange for being able to keep your property, you’ll have to pay a large portion of your outstanding debts in Chapter 13 bankruptcy. An attorney from Dodge City KS Law Services can help you determine how much you can afford to pay every month and will attend all hearings and meeting with creditors and the bankruptcy trustee with you.
Contact The Law Offices of Todd Allison and Sarah Newell for information about how bankruptcy can help you resolve your financial problems. Filing for Chapter 13 bankruptcy protection is taking a proactive step toward financial independence. With the assistance of your lawyer, you can learn effective money management techniques that will help you throughout your bankruptcy and the rest of your life. Watch our videos on Youtube.