Helping People In Foreclosure
If you are in danger of losing your home to foreclosure, you know you need to do something, but what? Bankruptcy can help. It’s not magic, but if you have suffered a temporary financial setback and want to save your home, bankruptcy may be the answer.
I’m Steven Bilsky, a Memphis-based attorney with more than 39 years of experience helping clients stop foreclosure and obtain debt relief. I can help you determine if a Chapter 13 filing may be what you need to stop a foreclosure in Tennessee.
Stop Foreclosure By Filing Bankruptcy
The core question is can you afford your mortgage? If you can, but due to illness, injury, temporary loss of hours or income, or other issues that have caused you to miss mortgage payments, go into default and build up an arrearage, you know your lender is likely to move your loan into foreclosure.
Filing a bankruptcy can stop the immediate danger of foreclosure and you can then set up your Chapter 13 plan to include your arrearage. This is a tremendous advantage, because you can then have up to five years to repay arrearage, as opposed to many mortgages, where the acceleration clause can make the entire balance of the loan due after one missed payment until your bankruptcy case is over.
Making Mortgage Arrears More Affordable
A Chapter 13 bankruptcy allows you to put your arrears — missed and late payments — in your repayment plan with no interest or penalties. This can be critical, as it gives you time to spread the missing payments out, making them more manageable.
If you also have credit card bills that have grown due to their being your fall-back financing during your crisis, you may also be able to eliminate much of that debt with your bankruptcy. This allows you to devote more of your financial resources to saving what is really important, your home.
Because every case is unique, as your lawyer, we will need to examine your specific situation, but bankruptcy may be the best way to not only stop foreclosure in the short term but also save your home in the long term.