The current state of the economy has affected numerous Tennessee families in the last year, and it doesn’t appear things will be improving much in the near future. As a result, you are on the brink of losing your home. There are several things you may do to successfully prevent foreclosure. Filing for bankruptcy is just one of them.
Pursuing a bankruptcy filing is not everyone’s first choice when dealing with debt issues, but for some, it ends up being the best choice. There are two types of bankruptcy available to address personal debt issues — Chapter 7 and Chapter 13. Each works in different ways, so which one you choose depends on what you want to get out of it in the end.
Chapter 7
If you decide you no longer want to keep your home or can’t sell it for the amount you owe on it, Chapter 7 bankruptcy may be for you. If your petition receives court approval, your qualifying debts, mortgage included, may be discharged immediately. This allows you to walk away from your home without a foreclosure showing up on your credit history.
Chapter 13
If you want to keep your home but need some help making the payment more affordable, Chapter 13 relief may be for you. With this type of bankruptcy, a repayment schedule is created that allows you to make payments for any qualifying debts in amounts that fit your budget. It also gives you more time to make any back payments you may owe on your mortgage to bring the account current. The repayment period will last anywhere from three to five years, depending on your circumstances.
Worth looking into
Bankruptcy as a way to prevent foreclosure may be a good fit for you. If you aren’t sure, it is at least worth looking into to find out. To learn more about this topic and how an experienced bankruptcy law attorney may be able to help you prevent foreclosure, please take a moment and visit our firm’s website.
