Stop Foreclosure
If you are finding it increasingly difficult to make your mortgage payments or have even fallen behind, you should know you have options. When you purchased your home or property, it was put up as collateral to the bank from which you borrowed money. This allows your lender to take control of your property through foreclosure should you default on your payments. However, you may be able to stop foreclosure by filing for bankruptcy with the assistance of a foreclosure attorney.
Who Qualifies for a Chapter 13 Bankruptcy?
Consumers who file for bankruptcy overwhelmingly file for either Chapter 7 or Chapter 13 bankruptcy. Qualifications for Chapter 13 bankruptcy include:
- A regular source of income
- Sufficient income to cover regular payments as well as living expenses
- Debts below Chapter 13 statutory caps
How does Bankruptcy Stop Foreclosure?
Once your attorney determines that you qualify for a Chapter 13 bankruptcy and you file, you’ll be granted an automatic stay. This will stop all creditor activity, including foreclosure. You will have the opportunity to create a payment plan with the assistance of your attorney. This plan will help you catch up on your missed payments over the space of three to five years and eliminate other debts.
What are Some Other Benefits of Bankruptcy?
Not only can a Chapter 13 bankruptcy help you stop foreclosure on your home, but it may also help you eliminate second or third mortgages you may hold on your home. Paying down your secured debts and eliminating a measure of your unsecured debts may be able to offer you the debt relief you need for a financial fresh start and renewed security in your home.
Economic struggles can be stressful, and you may not know where to turn. That’s why our New Mexico bankruptcy lawyers offer a free initial consultation. Our foreclosure attorneys can provide you with the kind of personalized advice you need to make the decisions best for your situation.