Facing Foreclosure? Bankruptcy Could Help!
By Dickron Bohikian
You've been laid off, or recently faced a medical issue, or had a family emergency - and now funds are tight. You may have missed the mortgage payment a couple of months in a row, and now the bank is threatening you with foreclosure - and you just don't have the cash on hand to catch back up. Does this sound eerily familiar?
This is a story we hear often - and what many people don't know is that for situations where you are behind due to a short-term life event (unpaid maternity leave, illness, layoff, etc), filing a Chapter 13 Bankruptcy could stop that foreclosure, protect your assets and help you get back on your financial feet.
A Chapter 13 Bankruptcy can be a really effective solution for individuals and families who are facing financial hardship, yet still have decent income. Unlike other forms of bankruptcy that eliminate most of your debt completely, with a Chapter 13 Bankruptcy you still pay some or all of your debt, but you will be able to do so in a way that is much easier on you financially.
Filing for Chapter 13 Bankruptcy will stop the foreclosure process in its tracks - and once the bankruptcy process has begun, you will have a payment plan for your mortgage and other financial obligations that you can afford. You will be able to keep your home and better manage your financial health.
With a Chapter 13 Bankruptcy, you will walk away with a repayment plan you can afford to work with, and as long as you continue making those payments for the length of your Chapter 13 Plan, your creditors will not be able to harass you - in fact, harassment after the bankruptcy filing is illegal. Stopping the creditor harassment can be an immense relief in and of itself! A Chapter 13 Bankruptcy may also help to stop interest and penalties from accruing on any back taxes, student loan payments will be reduced to a manageable payment amount, and (sometimes the biggest relief of all) the bill collectors will stop calling you.
Life happens, and you can't always control when something happens that sets you behind financially. Facing a foreclosure and unmanageable finances can be scary - but it is not a hole that you cannot dig out of. There are many options that could help you to rebuild your finances and credit, and filing a Chapter 13 Bankruptcy could be your ticket to an easier financial future if you are in a situation where you've fallen behind (whatever the reason).
If you are faced with these types of difficult decisions and questions, be sure to consult your local bankruptcy attorney for sound legal advice. If you live in Southeast Michigan, you can contact the Michigan Bankruptcy Law Centers at 810-494-7172 or visit us online at http://www.michiganbankruptcylawcenters.com for a free consultation to go over your unique financial circumstances and how they can be resolved.
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