Fortunately, Chapter 13 bankruptcy can save your home in several ways. You might be wondering how filing for bankruptcy could help you keep any of your possessions, much less your home. The majority of people view bankruptcy as the complete failure of their personal budgeting process, involving the loss of the majority of their assets in exchange for debt relief. Although this is partially true, there are various types of bankruptcy, one of which, Chapter 13, can provide relief from creditors while allowing you to keep your home and car. It can save your property in the following ways:
What is Chapter Thirteen Bankruptcy?
The very nature of this form of bankruptcy proceeding is one of the ways in which it can help you save your home. Far from requiring the liquidation of assets to satisfy debt, Chapter 13 bankruptcy is a specific filing designed to allow you to retain your major assets while adhering to a 5-year creditor repayment plan. If you are truly interested in how these payment plans can save your home, you will concur that it is preferable to live within a very tight budget than to lose the home in which you and your family have invested a lifetime of hopes and dreams.
The most important provision of the procedure that ensures Chapter 13 bankruptcy will save your residence is the automatic stay. This automatic stay is issued by the court when you file for Chapter 13 bankruptcy, effectively protecting you from repossession and/or legal action by creditors. In summary, you can save your home by preventing further foreclosure attempts so long as you adhere to your repayment schedule. Obviously, failure to adhere to this plan may result in the resumption of any debt collection efforts previously halted by the stay.
Through the power of the automatic stay, one of the greatest ways in which Chapter 13 bankruptcy can save your home is by protecting you from delinquent utility bills. This protection is one of the most effective, as it halts collection efforts on your past-due account while you adhere to your repayment plan, as a result of the fact that the rising cost of home energy has put many homes in peril of foreclosure over the past several years. To learn more about how Chapter 13 bankruptcy can help you save your residence, be sure to seek the counsel of a bankruptcy attorney.""
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