People do not simply choose to stop paying their mortgage. Instead, their inability to continue paying their mortgage obligations is usually the result of complex financial issues, usually tied to debt. Therefore, if you are facing foreclosure in Towson, addressing your debt problems by filing for bankruptcy could be the solution to all your problems.
Filing for bankruptcy, particularly Chapter 13 bankruptcy, should not be underestimated. It is not an easy undertaking, but it does enable the reorganization of debts so that repayments can be successfully made.
The automatic stay
One of the most important things to do in a response to foreclosure action warnings is to give yourself more time to find a solution. By filing for bankruptcy, you will be able to gain this extra time. This is because of the automatic stay that goes into place after bankruptcy is filed for. An automatic stay means that creditors cannot continue to take action against you as the debtor. This means that your mortgage lender cannot foreclose on your home.
The reorganization of debts
If overwhelming debts are the driving force behind why you cannot continue paying your mortgage, you can address these debts in Chapter 13 bankruptcy. In this bankruptcy filing, it is possible for you to create a repayment plan over a certain period of time.
This repayment plan will be designed based on your income, so it will be realistic to achieve. The repayment plan is likely to be challenging: You will probably need to give up luxuries such as vacations and eating in restaurants for the foreseeable future. However, the plan will allow you to address your financial problems at their root.
You may benefit from exemptions
Upon completion of the Chapter 13 bankruptcy repayment program, many debtors are eligible for exemptions. This means that some debts that you owe will be written off, and you will no longer be responsible for paying them. In this way, you will be able to enjoy a life without crippling debts.
If you want to learn more about how filing for Chapter 13 bankruptcy could help your financial situation, it is important that you take the time to learn more about the law.