If you are in danger of losing your home through foreclosure, you are most likely scrambling to try to figure out how to avoid doing so. Alternatively, you may be underwater in your home, owing more than it is worth. You may have a second mortgage that is more problematic than is your senior one. In all cases, you do have options available through which you may receive debt relief and through which your home might be saved.
If you file for Chapter 7 bankruptcy, the automatic stay will halt the foreclosure process by a few months. If that is enough time for you to catch up on your mortgage delinquency, you may be able to both save your home as well as obtain relief from your other debts. For many people, however, the short automatic stay of a Chapter 7 bankruptcy is not long enough, but it may provide you with the additional time needed to locate a new place to live.
Conversely, a Chapter 13 bankruptcy can in some cases stay the foreclosure process for a much longer period of time. The repayment plan period of a Chapter 13 bankruptcy may allow you the ability to catch up your delinquency over a period of three to five years while still making your regular mortgage payments. If you have a second mortgage, it is possible in some cases to turn in into an unsecured obligation under Chapter 13 and have it discharged.
At our law firm, our knowledgeable attorneys are practiced in helping our clients utilize both bankruptcy and non-bankruptcy options designed to help save their homes from foreclosure. Alternatively, in some cases, we help our clients negotiate an ability to walk away from properties in which they are upside down with as minimal damage as possible. If you have questions about your options, you may want to read our page on stopping foreclosure.