When someone falls behind on their mortgage payments, their creditors and lenders will typically go about gaining compensation by any means necessary. The most extreme method of compensation used by creditors is foreclosure, the forced sale of someone’s home in order to pay back their debt. If you have fallen behind on your mortgage payments, our Connecticut debt relief team outlines how bankruptcy can help you keep your home below.
Halting Creditors With Automatic Stay
While there are many benefits tied to bankruptcy, there is one that can be found immediately upon filing your bankruptcy paperwork. Automatic stay is the form of creditor protection on behalf of bankruptcy filers that makes any attempt to collect on your debts or attempt to foreclose your home illegal.
Not only does automatic stay go into effect the moment your bankruptcy begins, but it also remains active until your bankruptcy is completed. This means you will be able to conduct your bankruptcy and find the solution to your debt problems in peace and without creditor involvement.
Safeguarding Your Home and Debt Relief
Without a doubt, the best chapter of bankruptcy to help you maintain possession of your home is Chapter 13. Unlike other forms of bankruptcy, Chapter 13 does require you to liquidate, or sell, any of your assets in order to pay off your debts.
Chapter 13 bankruptcies reorganize your debts to help you pay them off over a set period of time, usually 3-5 years. With these cases lasting longer than those under Chapter 7, they give you the time you need to pay back your debts while simultaneously maintaining possession of all your property.
Contact Our Southbury Bankruptcy Team Today
We understand the stresses that can come with finances, and the threat of losing your home can be paralyzing. Using our experienced and compassionate services, we can help you gain your financial independence and save your home from creditors.
If you are looking for ways to resolve your financial issues, contact us today through our website or give us a call at (203) 774-3332 for your free case evaluation!