Save Your Home Through Chapter 13 Bankruptcy
Our Attorney Tells You How to Avoid Foreclosure
What is foreclosure? Are you facing foreclosure? Are you scared that your lender could force you out of your home? Have you made mortgage payments only to fall behind due to unemployment, divorce or illness? After you get Chapter 13 bankruptcy explained to you, you may find this option will work best for your situation.
You should know that you could save your home through Chapter 13 bankruptcy. Start laying a foundation for your future; protect your family and your property through bankruptcy.
Fortunately, Kevin Judd is a Chapter 13 bankruptcy attorney with nearly 20 years of experience helping residents save their homes. Take advantage of our free consultation and get Chapter 13 bankruptcy explained to you now.
The “Automatic Stay” Prevents a Lender From Taking Action
One of the best ways a homeowner can get foreclosure relief is through Chapter 13 bankruptcy. A bankruptcy generates an automatic stay that prevents creditors from taking action against you to collect debts. Chapter 13 bankruptcy lasts anywhere from three to five years, during which you will catch up on your past due mortgage payments while continuing to make your ongoing mortgage payments. A Chapter 13 bankruptcy also affords you the opportunity catch up on past due property taxes.
If a foreclosure is imminent, an attorney will be able to provide you with the best advice about when to file for bankruptcy based on your past income, your current income and the urgency of your foreclosure situation.
What is a Chapter 13 Lien Strip?
Another way a Chapter 13 bankruptcy can help a homeowner is through a “lien strip”. While it may seem impossible for a homeowner to escape debt, there are ways to discharge second or third mortgages, often called “junior mortgages,” through Chapter 13 bankruptcy. This process is known as a lien strip. To obtain a lien strip, a person must:
- Qualify for a Chapter 13 discharge. Our attorney can let you know whether you qualify. If you filed bankruptcy before, you may not qualify for a Chapter 13 discharge if your previous bankruptcy was too recent.
- Have enough regular income to meet repayment obligations. If you do not have enough money left over after your secured obligations, you may be eligible for a Chapter 7 bankruptcy.
- Be current on your income tax filings. You must have filed all your taxes before you can file bankruptcy.
- Prove that the balance due on your main mortgage loan is greater than the value of the home. For example, if your home is worth $100,000 and you owe $105,000 on your first mortgage and $15,000 on a home equity loan, you can strip the home equity loan if you meet all the other requirements, because your house is worth less than the balance due on your first mortgage.
Take advantage of our free consultation to get Chapter 13 bankruptcy explained to you now. Maryland and Washington DC bankruptcy lawyer Kevin D. Judd will help you finds ways to save your home. Unless you want a bank to take control of your home, the worst thing you can do is not take action. Contact our law firm now for more information.