When your lender has notified you of its intent to foreclose on your home, you may think that you can do little to save your home other than getting caught up on the payments. You may believe that you have no legal rights that you can use to save your home from being taken.
However, even with you being significantly behind on your mortgage payments, you still have legal rights that your mortgage company must observe during the process of seizing your home.
If you ask a bankruptcy lawyer about Chapter 7 bankruptcy, you will quickly learn that they call this the "liquidation" branch of bankruptcy. When you think of this word, you might realize that it means to sell things to generate cash to use for a purpose. Therefore, you might assume that you must sell all your things to repay your debts. While you might have to surrender some assets if you use Chapter 7, many people keep most of their assets.
Bankruptcy is often seen as a negative moment in one's life. However, this is often because the facts about bankruptcy are often not well understood. There are several facts about bankruptcy that can be very surprising. The best way to avoid surprises you don't want is to speak with a bankruptcy attorney.
1. You May Be Able to Stop a Repossession
If your car is being repossessed, you may be able to stop the repossession as long as the car hasn't already been sold by filing for Chapter 13 bankruptcy.
One of the first things a bankruptcy lawyer does during a consultation visit is to examine your income and debts to see which branch you should use. You might learn that you qualify for Chapter 7 and for Chapter 13, and many would rather use Chapter 7. Chapter 7 is not always the best choice, though. Here are four situations where you should consider Chapter 13 bankruptcy, even if you meet the requirements for Chapter 7.
Being prepared to declare bankruptcy involves two distinct areas of consideration. First, you must become aware that your financial condition is not going to become magically better. When you are no longer able to pay your bills and creditors have begun to either threaten or carry out more punitive measures, you should prepare yourself mentally. The other way of getting ready is far easier and involves the below actions.
Speak to an Attorney About Your Financial Situation