Filing for bankruptcy protection in Chapter 13 can stop a foreclosure and provide time for you to develop a strategy to keep your home. If you propose a repayment plan in Chapter 13 that demonstrates that you will have enough future income to make up the missed mortgage payments over the life of the plan (usually five years), while staying current on your regular monthly payments, you generally will be able to keep your house.

If you are unable to afford the missed mortgage payments and cannot negotiate a short sale or give your lender the deed in lieu of foreclosure, you may still be in debt to your lender following foreclosure if the total mortgage debt exceeds the value of the property. The only way to eliminate this “deficiency” may be through bankruptcy.

Homeowners who find themselves unable to afford to keep homes that are worth less than their total mortgage debt may prefer to “surrender” their homes to their lenders before being foreclosed. Bankruptcy may facilitate this surrender and eliminate any “deficiency” still owed on the mortgage.

If you find yourself unable to make your mortgage payments, bankruptcy may be a solution. As with all aspects of debt relief, however, it is critical to work with an experienced lawyer who can help you analyze your financial situation and determine the appropriate action to take.

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To Learn More About Foreclosure And Bankruptcy, Contact Us For A Free Initial Consultation

Balbus Law Firm is committed to informing homeowners facing foreclosure about their options and assisting them in eliminating or reducing their unmanageable debts.

When you work with Balbus Law Firm, you work with a firm that practices bankruptcy exclusively – one that has the comprehensive knowledge and flexibility to file your bankruptcy case in the most advantageous bankruptcy chapter, whether it is Chapter 7, 11, or 13.

To discuss bankruptcy in a free initial consultation, call 203-286-4121 or e-mail us.

Balbus Law Firm is a debt relief agency. We help people and businesses in New York and Connecticut file for bankruptcy relief under the Bankruptcy Code.