Statesville, North Carolina Bankruptcy Attorney
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If you can no longer pay your monthly mortgage or are falling behind on other bills as a result of paying your home loan, filing for bankruptcy may be the most effective way to avoid foreclosure. First, once you file for Chapter 7 or Chapter 13 bankruptcy, an automatic stay is place on all collection activity.
Get started today with Chapter 7 Bankruptcy for $299; Chapter 13 for $279
This means creditors and banks must stop any repossession or foreclosure actions against you. While the stay of relief is temporary, it provides enough time for you to consider your options and prepare a plan to avoid losing your home. At the Law Office of Robert G. LaMontagne, we work closely with people who are facing foreclosure in preparing and filing for bankruptcy.
If you are struggling to pay your bills or have already fallen behind in your mortgage payments, contact bankruptcy lawyer Robert G. LaMontagne today to schedule a free, one-on-one consultation to discuss your case.
Chapter 7 and Home Foreclosure
In order to qualify for Chapter 7 bankruptcy, your monthly income cannot exceed that of the average monthly income for families of a similar size in the state of North Carolina. If you qualify for Chapter 7, credit card debt, medical bills, certain kinds of loans, and other forms of unsecured debt will be wiped clean.
Once your unsecured debt is discharged, you may have enough disposable income left to make your monthly mortgage payment. It's worth noting, however, that if you are behind in your home loan, your back-owed mortgage payments cannot be discharged through Chapter 7 bankruptcy. As your lawyer, Robert G. LaMontagne can evaluate your situation and determine if filing for Chapter 7 can help you avoid foreclosure on your home.
Chapter 13 and Home Foreclosure
Filing for Chapter 13 bankruptcy involves a reorganization of your debt. You will be required to prepare and propose a repayment plan of most or all of your existing unsecured debt. Unlike in Chapter 7 bankruptcy, if you are behind in your mortgage, you can include the arrears in your proposed repayment plan.
And, while all of your unsecured debt will not be wiped out, the percentage should be reduced and you can combine the remaining debt you owe into one monthly payment that meets your particular financial needs. In this sense, Chapter 13 is geared towards people who are working. As in Chapter 7, if you continue to make monthly payments on your home, you can avoid foreclosure.
Talking to Your Bank
In many respects, foreclosing on a home is more expensive than trying to work something out with the homeowner. In some cases, a bank may be willing to modify your loan if you are a wage earner and have a subprime variable rate mortgage. If you bank is unwilling to offer a loan modification, filing for bankruptcy may be your only options for avoiding foreclosure.
To learn more about bankruptcy and foreclosure, contact bankruptcy attorney Robert G. LaMontagne today to schedule a free consultation and discuss your case.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
