One of the most frustrating aspects of owing a significant amount of debt are the steps creditors may take after missed payments. If you are behind on your mortgage payment, the bank could move to foreclose on your home. After receiving a foreclosure notice, you may wonder what you should do next and how you can keep your Virginia home. While it may feel like a hopeless situation, there are options available to you.
One step you may be able to take to stay in your home is filing for bankruptcy protection. While this may seem like an extreme course of action, this offers significant benefits to those who cannot effectively manage their current debt burden and catch up on their mortgage. There are specific bankruptcy options that will allow you to reorganize your debt, stay in your home and eventually regain your financial footing.
Is Chapter 13 bankruptcy the right option for you?
Chapter 13 bankruptcy is typically the most beneficial option for individuals who need to stop the foreclosure process. While this bankruptcy option does take a few years to complete, it could offer you the best way to keep your most valuable assets while still dealing with your debt efficiently. Consider the following facts about Chapter 13 bankruptcy:
- Chapter 13 allows you the opportunity to set up a repayment plan that lets you pay off your debt over time.
- You will submit a repayment plan, subject to approval by the court, that will outline how you plan to pay off your debt.
- Chapter 13 bankruptcy may be able to also eliminate payments from second and third mortgages.
If you feel like you cannot catch up or get ahead on your own, Chapter 13 bankruptcy could be the right choice for you. You could keep your home while still taking steps toward a better and strong financial future.
Making the choice to file for bankruptcy is a significant decision. Before you move forward with a choice that will have a significant impact on your financial future, you may benefit from learning as much as possible about Chapter 13 bankruptcy and how it could keep you in your home. When you know all of the options available to you, including their potential benefits and drawbacks, you can make confident and practical decisions.