How to Save Your Home
Wisconsin Home Foreclosure Attorney
If you believe you are in danger of losing your home because you have fallen onto hard times, you are strongly urged to contact an experienced home foreclosure attorney at Debt Advisors, S.C. today. Learn how Chapter 7 or Chapter 13 bankruptcy laws may hold the keys to saving your home.
Chapter 13 Bankruptcy is a Powerful Tool that can Save Your Home
Chapter 13 bankruptcy is a very powerful tool that can save your home if you have fallen behind on your mortgage payments and you want to rescue your home from mortgage foreclosure. As soon as you file Chapter 13 bankruptcy, an “automatic stay” goes into effect. This “stay” stops your mortgage company from continuing to foreclose on your home.
You can file a chapter 13 bankruptcy to stop a mortgage foreclosure, provided you:
- Are employed or have a steady source of income;
- Have enough income to make your Chapter 13 plan payments, and your current mortgage payments after the Chapter 13 is filed.
Chapter 13 plan payments are fixed so that you can meet all your living expenses first and then pay any surplus income to creditors.
Chapter 7 Bankruptcy May Offer Temporary Defense against Foreclosure
Chapter 7 bankruptcy is a liquidation bankruptcy. A Chapter 7 will typically eliminate:
- credit card debt;
- installment loans;
- pay day loans;
- medical bills, and most other unsecured debt.
In most cases, consumers will keep all of their property. If you are facing foreclosure on your home, the automatic stay created by your Chapter 7 filing serves as a temporary defense against home foreclosure. As opposed to Chapter 13 bankruptcy, Chapter 7 will give you a fresh start, but will not provide you with the opportunity to catch up with your mortgage payments.
However, Chapter 7 bankruptcy will allow you to discharge, or eliminate, any deficient balance owed to your mortgage company if your house is sold for less than the outstanding balance owed to the mortgage company.
Chapter 7 cannot stop a bank or mortgage company from foreclosing on property. Chapter 7 will temporarily delay the home foreclosure proceeding, but it cannot provide the long-term protection of Chapter 13 because no plan to repay the mortgage delinquency is proposed.
For more detailed information about home foreclosure and bankruptcy, see our home foreclosure resource center. We encourage you to contact a Wisconsin bankruptcy lawyer at Debt Advisors, S.C. to schedule a free initial consultation. We have offices located in Milwaukee, Madison, and Oshkosh.
We are a Debt Relief Agency. We offer legal advice related to bankruptcy, and help people file for relief under the Bankruptcy Code.