You work your butt off, pay your bills on time, do everything you’re supposed to do — but you still don’t have enough money to make ends meet. You literally are living paycheck to paycheck with no end in sight. Then one day, you receive that piece of paper telling you you’re in default. What do you do? Most people think they can cheat the system by filing for a Chapter 7 bankruptcy and the lender can’t do anything. Think again!
If you file for a Chapter 7 bankruptcy — otherwise known as a personal bankruptcy — an “automatic stay” is placed on all creditors, including the foreclosing lender. But the stay is just a temporary solution to your problem.
Chapter 7 basically gives you some breathing room from unsecured creditors (credit card companies) and makes sure certain creditors don’t constantly harass you or take action against you. But it does not get rid of your debt such as taxes, child support, alimony, student loans or the lender (secured debt).
The “automatic stay” in fact is only effective for as long as the court allows it to be. At any time the court can lift the automatic stay and grant the lender “relief from the automatic stay.” Once this happens, the foreclosure could come to fruition.
There is one exception, however. If you file a Chapter 13 bankruptcy, you can sit down with your creditors and arrange a payment plan to pay off your debt within a certain amount of time (3 to 5 years). Once an agreement is made, everyone must abide by it.
Chapter 13 in a sense is a financial reorganization. It is a great way to save your home from foreclosure and can halt foreclosure as long as you are consistent with your payments per the agreement.
So, basically, you can remedy the default and save your home through a Chapter 13 reorganization plan. But keep in mind, not everyone qualifies for a bankruptcy. You must meet certain requirements in order to do so. And there are also court costs involved with filing. Last, but not least, you will also need to hire an attorney who specializes in Chapter 13 bankruptcies.
As long as you meet the requirements needed to file for a Chapter 13 bankruptcy, it can mean the difference between saving or losing your assets. Filing for a bankruptcy is a sensitive situation, so you need an attorney who not also great with the proceedings, but people as well.
Justin Myers, attorney at law can help you through this trying time. His years of experience and expertise in the field makes him the perfect Chapter 13 attorney for you. Don’t hesitate to give him a call if you find yourself in this situation. He will represent you to the utmost of his ability, and make sure you walk away happy and well taken care of. Contact Justin Myers today and get on the road to retaining your home and your assets. You work too hard to just lose it all.
