If you have an underwater mortgage and are struggling to overcome your mountain of debt, the threat of losing your home to foreclosure is a terrifying reality. Both you and your family could have to deal with the consequences. Fortunately, meeting with a Fort Worth bankruptcy attorney can provide you with the expertise to delay or even avoid foreclosure altogether. A bankruptcy attorney has a plethora of tools and strategies, all designed to help you get back on track with your mortgage payments.
How Bankruptcy Can Stall or Prevent Foreclosure
Before we discuss exactly how a bankruptcy attorney can help you, it’s important to understand the basics of foreclosure. Essentially, when you’re behind on your mortgage payments and aren’t able to catch up, your lender tries to get the remaining payments through other means. Typically, your lender will start by auctioning off your home. Fortunately, the foreclosure process takes a long time, so if you’re having problems with your mortgage and foresee a foreclosure in the future, you may still have time to act. Filing for bankruptcy is one measure that you can take.
Meeting with a bankruptcy attorney about your mortgage can help you understand your available options. Some options include:
Chapter 13. If you work with a bankruptcy attorney, you can include your past due mortgage payments in a Chapter 13 filing. You should fully disclose your financial situation, which will allow your bankruptcy attorney to determine whether Chapter 13 is plausible for you, and whether this option will be successful. If you can still make mortgage payments, but need to have the plan restructured in order to keep making payments, this option is for you.
Chapter 7. If restructuring your debt doesn’t change your mortgage situation, Chapter 7 is the right option for you. A bankruptcy attorney will help you work to avoid foreclosure with a Chapter 7 filing, which will discharge nearly all of the debts included in your bankruptcy—a Chapter 7 filing can also include your primary mortgage.
It’s important to note that bankruptcy doesn’t always succeed in preventing foreclosure on your home, but working with a bankruptcy attorney can vastly improve those chances.