What happens if you fall behind on your mortgage payments?
If you fall behind on your mortgage payments, your mortgage company can initiate foreclosure proceedings. This means that your mortgage company can begin working toward foreclosing upon your house. At a foreclosure sale, the mortgage company would sell your home and you would be required to relocate.
Can filing a bankruptcy stop a foreclosure?
Filing bankruptcy can protect your home from foreclosure. Once a bankruptcy case is filed, the automatic stay swings into action. The automatic stay stops your creditors from being able to take any action to collect debts you may owe, including but not limited to foreclosure of your home. However, a bankruptcy case must be filed prior to the house being sold in order to stop the foreclosure. Once the sale has occurred, a bankruptcy filing can no longer protect your home.
Can bankruptcy help with missed mortgage payments?
A Chapter 13 bankruptcy case can help you get caught up on your mortgage payments. The missed mortgage payments can be included in a Chapter 13 plan and paid back over a 3 to 5 year period. The Chapter 13 plan can also include other debts you owe such as a vehicle loan, credit card debts, medical bills, tax debts, and more. Additionally, Chapter 13 can protect other property such as your vehicle, tax refund, and retirement funds.
Don’t wait until it’s too late!
If you have fallen behind on your mortgage payments, don’t wait too late to seek help. Take action to protect your home today. At Financial Freedom Legal, we offer free consultations to allow you to explore all of your options with an experienced bankruptcy attorney. You can complete a free consultation via telephone, Zoom, or in-person at our office. We are open 7 days a week and offer evening and weekend appointments. Contact us to begin your journey to financial freedom today!
