608 Mabry Hood Road, Suite 202 | Knoxville, Tennessee 37932
Bankruptcy can prevent mortgage foreclosure
Financial prospects look dim and many Tennessee residents are afraid that they will soon lose the family homes. A job loss, medical bills or other financial setbacks can make it difficult to keep up with mortgage payments. For those facing unmanageable circumstances, the focus shifts to trying to find a way to prevent mortgage foreclosure.
The individual has probably already discussed his or her financial situation with the mortgage lender. At first, the lender was probably sympathetic; however, this was most likely short-lived. After a couple of months, the mortgage lender doesn’t really care that the individual’s circumstances will soon be changing. The lender wants to be paid and is threatening mortgage foreclosure if it does not happen.
Once this happens, or preferably before things get to this point, it is time to discuss the situation with legal counsel. One way to stop the foreclosure process is through bankruptcy. Once the individual has filed for bankruptcy, the foreclosure process is halted. This action can give the individual the time he or she needs to address the cause of the financial problem.
Throughout the bankruptcy process, creditors, including the mortgage lender, usually prefer to work with the individual to come up with a repayment plan that will allow the individual to meet his or her financial obligations in a reasonable manner. Filing for bankruptcy can effectively pause the mortgage foreclosure process for the Tennessee resident. It may give him or her the time needed to find another job or perhaps have unsecured debt discharged thus providing the funds necessary to make the mortgage payment and paving a way to save the family home.
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608 Mabry Hood Road, Suite 202
Knoxville, Tennessee 37932
William E. Maddox, Jr. LLC, Attorney at Law is located in Knoxville, TN and serves clients in and around Knoxville, Oak Ridge, Louisville and Anderson County.
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