Financial difficulties can impact many aspects of your life. Debt collectors will make every effort to contact you repeatedly. As debt collection efforts become more intense, you might consider filing for bankruptcy. Working with a skilled bankruptcy attorney Oklahoma can give you the clarity to make an informed decision. It is the most acceptable option, given your current financial condition.
Many people considering filing for bankruptcy are worried about losing their homes. Some may face foreclosure. Others may manage their mortgage just fine but don’t want to lose their home in bankruptcy.
An automatic deferral will stop creditors and give all complainants some temporary breathing space, but whether you’ll be able to keep your home will depend on your situation, your state homestead release, and the chapter you’re filing.
A bankruptcy postponement automatically prevents creditors from proceeding with collection actions after you’ve filed a bankruptcy petition, including foreclosure proceedings. Allow the lender to continue the foreclosure.
Keeping your home is often the most significant concern about filing for bankruptcy – and which chapter to file.
Three factors determine whether you can defend your home in bankruptcy proceedings:
- – The bankruptcy chapter you filed.
- – How much equity have you paid into your mortgage?
- – If you can afford your monthly mortgage payments when you are in debt
Protecting Your Home in Chapter 13 Bankruptcy
You keep your property and pay back your debt (some in total) over time. Since you saved your property in Chapter 13, you will not automatically lose your home. But keeping the house in Chapter 13 can be expensive.
You’ll be fine if you’re currently in your mortgage payments and can cover all your equity except bankruptcy. However, this is where it can come at a cost—a whistleblower must pay a creditor a total amount of equity under the plan. So you must demonstrate that you have sufficient income to cover your monthly home payments, non-exempt equity, and all other debt payments required over the three to five-year Chapter 13 repayment plan.
If you’re late on a mortgage payment and facing foreclosure, Chapter 13 allows you to pay off the arrears through your payment plan. For this reason, Chapter 13 is often an excellent choice for people who are at risk of losing their homes. But again, you must demonstrate that you have sufficient income to make your regular monthly payments and pay the arrears and all other necessary amounts—including any equity replacements with no exceptions—for the duration of the program.
This form of bankruptcy may suit your situation if you are currently late paying for your house or vehicle. An Oklahoma bankruptcy attorney can evaluate your current situation to see if a Chapter 13 payment plan would help to:
- – Get rid of your unsecured debt, which may include credit card bills, medical bills, repossession shortfalls, foreclosure shortfalls, and more, through a payment plan that’s affordable to you.
- – Keep your home, condo, or mobile home even under foreclosure; and
- – If you miss a few monthly mortgage payments and default, hold on to your home.
