While shaking creditors is the most common reason many people enter into the bankruptcy process, filing for bankruptcy can also put a grinding halt to another major financial hardship: foreclosure.
Stop Foreclosure on Your Home
Most people are surprised to know that they can actually stop the foreclosure process by filing for chapter 13 bankruptcy. Ready for another surprise? You don’t even have to complete the process to see foreclosure come to a grinding halt. Simply by filing the petition for Chapter 13 bankruptcy, you can put a stop to foreclosure!
That’s right! All you have to do to stop foreclosure is file a Chapter 13 petition. Chapter 13 bankruptcy is known as a “wage earner’s plan,” which means it helps you repay your debt by developing a repayment plan that works within your needs. Typically this lasts about three years.
If you’re afraid of losing your home, but you still have a decent income, filing for Chapter 13 bankruptcy can be a brilliant move! Of course, there are some negatives associated with filing for bankruptcy. We certainly don’t intend to mislead anyone by suggesting bankruptcy is an entirely rosy process. However, when your alternative is losing your home, Chapter 13 can start to look pretty good!