Tag Archives: Foreclosure

may allow you to keep important assets and discharge debts. However, it does require you to complete a three to five-year repayment plan. Unless this repayment plan is completed, the court will not allow you to discharge debts. In addition, creditors could seize your assets. Therefore, it is essential to complete the Chapter 13 repayment plan. There are several ways you can improve the odds of completing the payment plan, such as: Setting up automatic payments: According to research, districts that require automatic payments have higher Chapter 13 bankruptcy completion rates. In fact, out of the top 20 percent of districts with the highest completion rates, nine require debtors to make automatic payments. Instead of writing a check to the trustee each month, debtors have payments taken straight from their bank accounts. Follow your budget: It is essential to stick to your budget while making your Chapter 13 payments. Avoid…
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If you are behind on mortgage payments, you may have several options to stop foreclosure. For example, a loan modification may allow you to change the terms of your original mortgage agreement. This could potentially lower payments, but it might also mean extending the repayment period and paying more in interest or fees. On the other hand, filing for Chapter 13 bankruptcy can also save your home. In fact, Chapter 13 offers you several advantages over other options, such as: Halting collection attempts: Filing for bankruptcy issues an automatic stay, which temporarily halts collection attempts by creditors. Creditors cannot foreclose on your home after you file for bankruptcy. Allowing you to become current: By filing for Chapter 13, your debts are grouped together into a three-to-five-year repayment plan (including arrears from late payments). In addition, your unsecured debts are discharged after completing your repayment plan, meaning you can focus on…
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There are many questions bankruptcy attorneys are used to answering. A common question we hear is: “should I file for bankruptcy?” Whether bankruptcy is the right choice for you depends on the specifics of your financial situation. Bankruptcy may help offer protection if your situation stands to become worse and if creditors have taken legal actions to collect your debts. You may want to ask yourself the following questions: Are your wages at risk of being garnished? Depending on your situation, wage garnishments can take up to 15 percent of your disposable income. It can become much more difficult to make payments on other debts if your wages are being garnished, such as a mortgage or auto loan. Are you at risk of defaulting on other debts? If you are at risk of foreclosure or having your vehicle seized by creditors, bankruptcy can be a helpful option. What is your…
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