Can I Avoid Foreclosure Through Bankruptcy?

Under Chapter 13 bankruptcy, all of a homeowner's debt will be consolidated into one lump sum, which is to be paid off over time. The homeowner will then be required to make payments toward this lump sum of debt over a period of three to five years. Once a homeowner has finished the bankruptcy payment plan, he or she can begin making mortgage payments again without the bank threatening to foreclose on the home. Once a person has filed for bankruptcy, the bank will no longer be able to proceed with the foreclosure. 

Is Bankruptcy the Right Choice For Me?

Filing for bankruptcy as a way to avoid foreclosure is not for everyone, such as those people with low or unstable income.  If you are considering bankruptcy, it is important to make sure you are able to make all of the payments towards your bankruptcy plan. One missed payment can reignite the foreclosure process.

If you are facing foreclosure, and are wondering whether or not bankruptcy is a good option for you, it's best to speak with an experienced bankruptcy attorney in your area. A skilled bankruptcy lawyer can review your financial situation, as well as your current level of income, in order to properly assess the situation.  If filing for bankruptcy is not the best option for you, your attorney can inform you of other alternatives for avoiding foreclosure.

To find a solution to foreclosure that works best for you, click here to find a bankruptcy lawyer in your area.