The most recent foreclosure statistics present a disheartening image of the real estate market and the American overall economy. According to RealtyTrac, an average of 1 in every 634 housing products received a foreclosure getting in December of 2011. The states with the greatest rates of foreclosure were California, Florida, Nevada, Illinois, Georgia, Michigan and The state of Illinois. As homeowners across the country are facing home foreclosure or threatened foreclosure, it is important to consider carefully what remedies are available.
Filing for bankruptcy is one way that property foreclosure can be halted or even avoided entirely. If a person files an individual bankruptcy petition, this places what is called an “automatic stay” on all debts collection proceedings against the petitioner. This includes foreclosures. In a Chapter several filing, this may offer a debtor time to shape out how to sell or surrender the home by using a behavior in lieu of property foreclosure or a short deal. In a Chapter 13 filing, the computerized stay might not exactly only buy the homeowner time to determine what to do, but past due mortgage obligations and penalties may actually be as part of the homeowner’s repayment plan – enabling him or her to actually save the home and avoid foreclosure.
Chapter 13 bankruptcy is unique because it is a reorganization of debt. A debtor who seeks bankruptcy security under Chapter 13 of the U. S. Individual bankruptcy Code will submit a repayment decide to the personal bankruptcy court. This course of action, which typically lasts for 3-5 years, will involve the consumer making regular payments to a bankruptcy trustee, who will then distribute the payment between creditors. This kind of payment amount is structured after the debtor’s throw-away income. This repayment plan can include past scheduled home loan repayments and penalties, and as long as the debtor remains current on these payments and future mortgage payments, he or she may be able to maintain your property.
This kind of is a brief summary of how chapter 13 Bankruptcy may affect foreclosure procedures. Every case is different, and certain factors may affect a debtor’s potential in order to save his or her home. That is why you will probably find it helpful to seek advice from with a professional. A attorney who may be experienced in handling Chapter 13 bankruptcy proceedings will offer understanding as to how your home may be influenced if you file. You can even get information about the particular benefits and drawbacks of Section 13, such as their ability to protect co-signers or its impacts on your credit score. These kinds of are all problems that you may want to take into account before making a choice.