Saving Your Property With Bankruptcy

Filing for bankruptcy can prevent foreclosure, car repossession, or other forms of property loss, which may be vital for the family. When you file your paperwork with the court, an automatic stay goes into effect, stopping all actions against you from collecting on a debt.

Bankruptcy can help to stop Foreclosure

If you would like to keep your home, filing Chapter 13 will give you three to five years to make up the arrears. If you would like to be relieved of the house payment, filing Chapter 7 will provide you with time to make arrangements to move while liquidating some of your assets, and you will no longer be responsible for the debt. The automatic stay will take effect and be useful for temporarily stopping a foreclosure.

Discharge of your second Mortgage

While many homeowners opt for second mortgages, it has many disadvantages. The primary mortgage is mostly secured while the second mortgage is unsecured debt, liable to be discharged completely. For relieving the second mortgage, you must seek legal consultation of a bankruptcy attorney for a suitable course of action.

Vehicles Repossession

If you are behind in your car payments, and the threat of repossession has been made, filing bankruptcy will stop those actions and give you time to decide how to proceed. Sometimes you can lower the interest rate and get the fees removed if you pay off the car in one lump sum in a Chapter 7 bankruptcy. If you need more time to pay the arrears, Chapter 13 would be the right choice giving you three to five years to make a payment plan.

If you are worried you will lose your property, contact a Rio Grande bankruptcy attorney to find out how you can get financial relief and keep possession of your assets.