When Can Bankruptcy Be Used to Protect a Home From Being Seized?
By Larry Hercules | Published on August 29, 2011 | 0 Comments
Homeowners who have missed multiple mortgage payments may be able to use bankruptcy as a way to save their homes but only in very limited circumstances. According to Plano foreclosure attorney Larry K. Hercules, a person cannot continue to live in a home unless he or she can start keeping up with the payments each month.
One of the major bankruptcy myths is the false belief that people who file for bankruptcy can keep their homes without having to make their mortgage payments. This is simply not true. The Plano foreclosure attorney says that a person has to be able to not miss any more payments if he want to keep his home. A person cannot file for bankruptcy and continue to miss payments on his mortgage. If he does that, then he will lose the home eventually.
What people can do, in instances where they have sufficient cash flow, is to opt for a Chapter 13 bankruptcy. Chapter 13 bankruptcy gives people 60 months to get caught up on any overdue or missed mortgage payments, after which they can go back to making normal monthly payments on their homes just as they were before bankruptcy began.
Unfortunately, the Plano foreclosure attorney says this may not be the best route to go for a person who has recently lost his job. A high percentage of people are unemployed right now, and these people are going to have a difficult time keeping up with their mortgage payments even if they do decide to go the Chapter 13 route. However, a person who is behind on his mortgage payments but does still has a good paying job can use Chapter 13 bankruptcy as a way to buy the time necessary to get back on track.
Most people who are unemployed are going to lose their homes if they cannot afford their mortgage payments, however many of them would still be better off going with a Chapter 7 bankruptcy than sitting back and doing nothing while the banks foreclose on their homes.
The same principles apply to people who have car payments as well. The Plano foreclosure attorney says that a Chapter 13 bankruptcy is a good option for people who need extra time to catch up on late car payments. However, it is only a good remedy in instances where the person can afford to continue making his payments once he or she is caught up. If a person can no longer afford his payments due to a job loss, then a Chapter 13 bankruptcy is not going to be his best option.
For more information, Hercules recommends contacting his law firm and scheduling a consultation appointment.
in Plano, TX
Plano,
TX
75093
Phone: 972-964-9757
*Disclaimer: This article is for informational purposes only. You should not rely on this article as a legal opinion on any specific facts or circumstances, and you should not act upon this information without seeking professional counsel. Publication of this article and your receipt of this article does not create an attorney-client relationship.