If you are severely delinquent on your mortgage payments and you are facing a foreclosure action (or your lender is threatening to file one), you may want to consider filing a Chapter 7 or Chapter 13 case. Many bankruptcy cases are filed due to individuals trying to avoid a foreclosure action.
Chapter 7 and Chapter 13 are the two main types of personal bankruptcy filings for individuals. Each type of case has its pros and cons. An experienced bankruptcy lawyer can review your individual circumstances and help you determine which type of filing will be most beneficial for you.
When you file a Chapter 7, your non-exempt assets are liquidated to pay your creditors. It is important to understand that most Chapter 7 debtors have very few non-exempt assets. A Chapter 7 filing may not completely stop a foreclosure, but it will allow you to stay in your home for a few extra months. Your mortgage lender has the ability to seek relief from the automatic stay to proceed with the foreclosure action, but this process takes time which may allow you the ability to negotiate with your lender. Additionally, if your home is foreclosed, the Chapter 7 filing will discharge any amounts left due and owing under the mortgage loan after the foreclosure sale.
When you file a Chapter 13 case, you must file a Chapter 13 plan of reorganization which sets forth how you intend to repay and handle your debt. A plan lasts for a term of 3 to 5 years. You can provide for payments under the plan to repay the delinquent mortgage payments and bring your current on your mortgage obligation. As a result, the foreclosure process is halted as long as you are making your court-approved Chapter 13 plan payments.
Facing foreclosure is overwhelming. Before you lose your home in a foreclosure action, it is wise to confer with a bankruptcy attorney to consider your options for trying to save your home.
The “defender of the little guy,” DeLadurantey Law Office. LLC. handles bankruptcy matters (Chapter 7 and Chapter 13) in Milwaukee, South Milwaukee, West Milwaukee, and Milwaukee County, including the municipalities of Bayside, Brown Deer, Cudahy, Fox Point, Franklin, Glendale, Greendale, Greenfield, Hales Corners, Oak Creek, River Hills, Shorewood, St. Francis, Wauwatosa, West Allis, and Whitefish Bay. The firm also can handle your debt negotiations, debt relief, and mortgage loan modifications. Contact DeLadurantey Law Office, LLC by phone: (414) 377-0518. Like us on Facebook.