For those of you who don’t realize what a benefit a Chapter 13 Bankruptcy has, let me be the first to tell you that it’s a powerful card to play. If you have fought tirelessly with your mortgage lender for a loan modification, to no avail, filing a chapter 13 bankruptcy can stop foreclosure dead in its tracks. This buys you time and some breathing room to develop a plan to spread out those overdue payments into something manageable over 3-5 years. If you are upside, by having multiple mortgages, a Chapter 13 can eliminate or “strip off” second and third mortgages. So if you really want to keep your home, consider a Chapter 13 as the most powerful tool available when dealing with your mortgage lender.
Perhaps you don’t want to keep your home but you need some time to find another place to live. If that’s the case a Chapter 7 bankruptcy will also immediately halt a pending foreclosure sale. Both chapters have the power to halt all collection activity, including lawsuits, the very second your case is filed, even on the same day as your foreclosure sale. However, contrary to a Chapter 13, a Chapter 7 only temporarily stalls the foreclosure, albeit it may be stalled for months once you have filed. So it’s important to discuss with your attorney what you would like to accomplish with your home so that an effective strategy can be put into place to get you pointed in the right direction. There are many options that can be used whether you decide to keep your home permanently or just temporarily. A skilled Bankruptcy and Litigation Attorney is worth his weight in gold when it comes to strategic planning.
For more information about saving your home, filing a Florida Bankruptcy, or defending a Foreclosure action contact Jacksonville, Florida Attorney Robert L. Peters at:
904-491-1083 Fernandina Beach
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