Do you have an income, but it's not quite enough to take care of your debt?  Are you feeling overburdened by debt?  If so, you may have already though about bankruptcy.  For people in your situation, it's important to remember that bankruptcy does not mean you'll lose all of the assets you've worked so hard to accumulate.  Rather, filing for bankruptcy just might help you save one of your most important assets: your house.

It's true… filing for bankruptcy can prevent foreclosure.  For some people, it may just mean a few more months in your home.  But for others, Chapter 13 bankruptcy can be the much-needed lifeline that keeps you in your home forever!  Want to learn more?  We have everything you need to know about saving your home from foreclosure through the bankruptcy process.

The Basics of Chapter 13

Essentially, Chapter 13 is a form of bankruptcy that is great for people who have an income, but aren't earning quite enough to tackle their debts.  When you file for Chapter 13 bankruptcy, you undergo some serious debt restructuring.  This restructuring reduces the amount that you owe (also known as debt consolidation), and also provides you with bankruptcy protection so that you aren't hounded by creditors.

Where Foreclosure Comes In

This is where foreclosure comes in.  Of course, foreclosure is really just another form of debt collection.  If you're unable to pay your mortgage, your mortgagee is going to come collecting.  When you still can't pay, you're foreclosed upon.  By filing for bankruptcy, you get extra time to pay off debts and amass some more money before you have to return to making payments on your mortgage!

Using Bankruptcy to Your Advantage

For those who are truly burdened by financial hardship, bankruptcy can be a great way to save your home.  Of course, saving your home from foreclosure isn't the only benefit of filing for bankruptcy.  You'll also finally get rid of all of the cumbersome debt that has been weighing you down!

And, we should mention that Chapter 13 isn't the only form of bankruptcy available.  You can also file for Chapter 7, a form of liquidation bankruptcy, in order to prevent foreclosure.  However, Chapter 7 doesn't usually save your home in the long term.  If you just want to extend your life in your home though, it's definitely an option worth looking into.

If you want to learn more about the bankruptcy process and how you can use it to your advantage in the face of foreclosure, please don't hesitate to contact us for more information!