Creditors will do whatever it takes to gain compensation, and when individuals fall behind on their mortgage payments, their home becomes the primary target. This is done by the forced sale of someone’s home in order to pay back their debt.
If you are extremely behind on your mortgage payments, our Hawaii bankruptcy team outlines how you may be able to keep your home below.
Halting Creditors With Automatic Stay
While bankruptcy holds a number of advantages for filers, one benefit, in particular, is key for those with homes at risk of foreclosure. The automatic stay is the bankruptcy-specific provision that makes any creditor action to collect on your debts illegal.
Not only does automatic stay go into effect the moment your bankruptcy begins, but it remains in place until the bankruptcy process is complete. This means you will be able to place your full focus on bankruptcy and financial freedom without your creditor, or the threat of losing your home, constantly looming over you.
Safeguarding Your Home and Debt Relief
Without a doubt, the best chapter of bankruptcy to keep you from losing your home is Chapter 13. Unlike other chapters of bankruptcy, Chapter 13 does require you to liquidate, or sell, any of your property as compensation for your debts.
Chapter 13 bankruptcies are designed to reorganize your debts to help you pay them off over a specific period of time, usually 3-5 years.
While these cases last longer than those under Chapter 7, which typically take 4-6 months, they give you the amount of time you need to pay back your debts while simultaneously maintaining possession of all your property.
Contact our Hawaii Debt Relief Team Today
Saving your home through bankruptcy is more than possible, and our seasoned team of legal professionals at Blake Goodman, PC, Attorney can help you find success.
If your home is at risk of foreclosure, and you are in need of legal assistance, don’t hesitate to contact us online today, or give us a call at (808) 518-4844 today!