Most people don’t go out into the world with the expectation that they will fail financially, but good intentions don’t always prevent it from happening. Unfortunately, debt can have serious consequences, including causing a person to lose their home through foreclosure. When a person finds themselves in this harrowing situation, it’s vital for them to know that there may be a remedy available to them.
Read on to find out why filing a chapter 13 bankruptcy petition may be a good idea for a person looking for a way to stop foreclosure in Arnold, MO.
* One of the major benefits of filing any type of bankruptcy petition is the automatic stay that is granted to the debtor as soon as the petition is received. This automatic stay demands that creditors cease all collections efforts, including foreclosure, while the bankruptcy is pending. However, it is important to note that the stay won’t do anything about the three-month time limit on a foreclosure notice, so it’s important for debtors to file at the right time.
* Chapter 13 bankruptcy has particular benefits that can help homeowners stop foreclosure in Arnold, MO. Unlike chapter 7, chapter 13 allows homeowners to create a budget-based repayment plan that will help them catch up with late bills and bring their accounts current over a three-to-five-year time period. Once that time is up, many of the debtor’s unsecured debts will be eligible for discharge, which gives them even more money to pay their mortgage after the bankruptcy case is closed.
* Those who have more than one mortgage on their home will be happy to know that filing chapter 13 bankruptcy may make them eligible for lien stripping. If the mortgage on the home exceeds the value of the home, then any additional mortgages are considered “wholly unsecured” debt. The stripped liens receive the same treatment as other unsecured debts, which usually means they will go away once the bankruptcy is over.
Chapter 13 bankruptcy can be beneficial, but it can also be complex, which is why it’s best to get the right legal representation. Not only will the right attorney make sure that the petition is filed correctly and on time, but it will make the process much smoother and less frustrating. Visit Stlbankruptcyfirm.com to learn more about how hiring a chapter 13 bankruptcy attorney can help struggling debtors finally get their lives back on track.
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