For many homeowners, bankruptcy can be an alarming prospect. But, for homeowners who are facing foreclosure, bankruptcy can be a great opportunity. What’s the connection? It’s simple. If you’re struggling to make ends meet with your mortgage, you can’t afford not to know about the relationship between Chapter 13 and foreclosure.
Clue Me In!
Here’s the deal. Filing Chapter 13 bankruptcy (essentially a form of debt consolidation and restructuring) can prevent your home from entering into the foreclosure process! For people in Dallas, bankruptcy is starting to look pretty good. And, others all across the nation are starting to pick up on this strategic move as well.
Of course, there are some cons to bankruptcy (you’ll definitely see your credit score take a dive). However, what’s a credit score compared to keeping your family’s home? Credit scores can be repaired. Right now, you need to focus on your family’s well being!
When you file for Chapter 13, the court issues an “automatic stay,” which means creditors can no longer collect on your debts for a certain period. This includes your mortgage, but it includes all other debts as well!
This is great news for you! Filing with the Dallas bankruptcy court may be a strategic move for you to make. However, you should act quickly. Make sure you file your case before the foreclosure process begins. You should have a pretty good idea whether or not foreclosure is a strong possibility. If you believe it is, acting now can prevent it. Don’t wait until it’s too late!