One of the harsh realities that have come from the global economic recession is that foreclosures in Minnesota are at an all time high. More and more people are struggling to make the payments and are losing their homes to their lending companies. There are several ways you can avoid foreclosure; however, many people look past the option of bankruptcy as one of these ways. In reality, filing for Chapter 13 bankruptcy will give you the time to play catch up on your mortgage payments and keep your home in the process.
Foreclosure and Chapter 13 Bankruptcy
When you file for Chapter 13 bankruptcy, you are not liquidating your assets. Instead, you are reorganizing your debts into a payment plan that will work for you. This allows you to play catch up on your payments without having to succumb to foreclosure, wage garnishment and repossession. Furthermore, it will stop the creditors from hounding you and the lending companies from threatening to take your home. Chapter 13 bankruptcy is a great alternative to anyone who is worried about their debts and outstanding payments but do not want to go with the more drastic option of filing for Chapter 7 bankruptcy.
Chapter 13 bankruptcy will put you on a payment plan to catch up on your accumulated debts for three to five years. Once your time is up, the remaining debts will be discharged. However, this does not mean your mortgage payment. You will still need to continue with your mortgage payments; filing for Chapter 13 bankruptcy will simply provide you with some time and structure as you get your life back on track.
Your Foreclosure Situation
Even if your home has been scheduled for a foreclosure, you can still file for Chapter 13 bankruptcy and prevent this from happening. You will need to make regularly scheduled future mortgage payments through your bankruptcy payment plan which will be automatically accepted by the lending company. This means that even if your mortgage payments are lower than what you and your lending company agreed to, you will still be able to keep your home. Furthermore, as long as you continue to make the monthly mortgage payments and the monthly trustee payments, your lender cannot foreclose your home. You are safe.
But what happens if you are unsure if you can make the payments? Many people are struggling with unemployment and thus are unsure of what the future holds. All they know is that right now they cannot make the payments and thus their home may be foreclosed. Even if you are unsure of what will happen in the future, you can still buy some time by filing for Chapter 13 bankruptcy. In most instances, contacting a Minnesota bankruptcy attorney and filing for Chapter 13 bankruptcy will give you twelve more months to remain in your home and find a solution that works for you. In twelve months you may discover that you have found an excellent paying job and that, finally, things are looking up.
How a MN Chapter 13 Bankruptcy Attorney Can Help
If your home is in jeopardy of being foreclosed, it’s important to contact aMinnesota bankruptcy lawyerimmediately. He will advise you on the next plan of action and determine if Chapter 13 bankruptcy is the best option for you.