Bankruptcy is a Debt Relief Option That Helps People Avoid Foreclosure

by | Jun 11, 2014 | Attorney

After receiving the foreclosure letters from your mortgage lender, you may feel a sense of urgency to do something to stop this. One option is to hire Rapa Law Office P.C. for help. Lawyers are experienced with debt relief, and they may be able to help you stop the foreclosure from happening. While there are several options, bankruptcy is one this law firm may recommend.

When a person files bankruptcy, the foreclosure proceedings must legally stop. This does not guarantee that you will be able to save your home, but there is a good chance you can. The first step of this process is determining what branch of bankruptcy to file, and there are two main options.

Chapter 7

The first option is through Chapter 7 bankruptcy. Through this, you will be able to keep your home if there is very little equity in the home. Your bankruptcy attorney will help you calculate the equity you have, and this will determine what will happen during bankruptcy. If you qualify for this branch, most of the debts you owe will be discharged. This means that they are forgiven, and you will never have to repay them.

Chapter 13

Chapter 13 bankruptcy is another form of debt relief, but this branch is different from Chapter 7. Through this, you will most likely be able to keep your house, but you will also have to repay most of some of the debts you owe. This branch is known as the restructuring branch of bankruptcy, and it works great if you have steady income. A lot of people may not qualify for Chapter 7, and this leaves Chapter 13 as the only option.

Other Options

If you do not want to file for bankruptcy, an attorney may be able to help you come up with other options. The only problem with other forms of debt solutions is that they may not give you the option to save your house.

Always talk to an attorney before making any decisions, and do it quickly if you are facing a foreclosure in the near future. This may help you save your house, and you may find that filing for bankruptcy is the best solution for your problems.



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