People who are behind on their mortgage payments feel a great deal of stress about their situations. Not being able to keep up with housing costs might lead people to feel as though they are financial failures; worse yet, though is the threat of losing the house altogether in the event of foreclosure. There might seem like no single answer that can help people who are in this predicament.
However, people who find themselves worried about losing their home do have options. One of them is to file for personal bankruptcy. People who have sufficient income might consider filing for Chapter 13 bankruptcy. By doing this, any foreclosure action against a homeowner will be stopped.
Chapter 13 bankruptcy provides a path for people to reorganize their finances and make payments over a three-to-five-year period to their creditors. It may be a more viable option for people whose incomes are too high to make Chapter 7 bankruptcy a good choice.
People who have large amounts of debt need to take stock of their situation and decide what their best plan of action is. For the overwhelming majority of people, keeping their house and not being foreclosed upon is of paramount importance. Thus, choosing the correct bankruptcy filing is key.
Of course, people do not have to go it alone when they get to this point. New York residents need to know that they can reach out to experienced bankruptcy attorneys who can help to walk them through the process and explain their options.
Source: The Huffington Post, “Bankruptcy: The Foreclosure Kill Switch,” Jorge Newbery, April 22, 2014