Filing for bankruptcy is never a fun thing to admit to others, but it’s a necessary evil that homeowners often turn to in order to refinance their debts. At the Law Office of Bardsley & Gray, many of those who consult with us about filing for bankruptcy ask about filing for Chapter 7. However, what you may not know is that there are benefits to filing for Chapter 13 — including saving your home from foreclosure.
How Chapter 13 Works
When filing for bankruptcy, one of the first things that occurs is your bank will demand you pay back your mortgage in full. Obviously if you’ve filing for bankruptcy, then paying back all the loans, plus interest, that you’ve borrowed in order to pay for your home is not possible. The result: Foreclosure.
With Chapter 13, you can instead choose within reason how you are going to repay your mortgage company. With the help of an experienced attorney from the Law Office of Bardsley & Gray, we can arrange so that you are paying small amounts over the lifetime of the Chapter 13 plan. This is how you will be able to avoid foreclosure and keep your house.
Details to Keep in Mind
It’s important to understand that this doesn’t automatically mean you get a free house — you still need to pay back all the debts you owe, but this will buy you time and give you a structured plan to make those payments. One reason why Chapter 13 is less popular is because it can take 3-5 years to go through the process. Be sure you’re willing to commit for the long haul!
At the Law Office of Bardsley & Gray, our experience in bankruptcy will be able to help you get through your financial crisis quickly and efficiently. Contact us today!