When you realize that bankruptcy may be your only way out of debt, it may scare you. You may think that you’re going to lose your house and your vehicle. You might think you’ll end up selling everything you own just to escape this situation.
Fortunately, that is not usually the case. Even if you’re already facing a foreclosure, it is possible for you to stop the collections efforts and to keep your home. Bankruptcy is actually a great way to stop a foreclosure from moving forward. Even if you know that you won’t be able to keep your home in the end, a Chapter 7 bankruptcy will still give you several more months of protection. If you decide to pursue a Chapter 13 bankruptcy and want to stay in your home, you may be able to pay the mortgage and arrears over time, so that you can catch up and stay in the home that you love.
Bankruptcy will help you cure delinquent payments, bring your mortgage current and give you the opportunity to negotiate a way to keep your home. In some cases, you may be able to have fees and fines dropped, so you can move forward with your home’s mortgage paid in full each month.
Bankruptcy isn’t always going to be the right answer to help you keep your home, but it may be a good option if you’re struggling with bills, fines or fees. Our website has more on choosing bankruptcy to stop foreclosure and when foreclosure may be the right option for you. If it isn’t, there are other options that you may be able to look into to help with debt relief.