Losing a home to foreclosure is one of the most devastating events a family can go through. So much goes into choosing the perfect property and turning it into the perfect home for a family that having to forfeit it due to a period of financial instability can be heart wrenching. Fortunately, for many people, it is possible to avoid foreclosure and keep the property where they are raising their children by filing for chapter 13 bankruptcy in Hamilton, OH.
Chapter 13 bankruptcy offers families at risk for foreclosure the opportunity to reorganize all of their debts so they can make a single, affordable payment every month. Because mortgage loans are secured by the property, homeowners must be able to make the entire payment every month in order to keep the house. However, filing bankruptcy may eliminate any second or third mortgages on the property and make the total house payment more affordable. If the family is behind on their first mortgage payments, they can pay back the arrears over time through the bankruptcy court.
Homeowners who have fallen behind on their payments should first attempt to make payment arrangements with their lender. This type of payment plan can help them avoid bankruptcy and is ideal if they have been able to pay their other bills on time. However, when a family has multiple debts that are past due and creditors threatening them with court action, chapter 13 bankruptcy in Hamilton, OH might be the best solution to their problem. In order to keep real estate through bankruptcy, the homeowner much has enough income to cover the current payment as well as some money to put toward other debts and the past due amount on the home loan.
Most people will do everything they can to avoid losing the home they have put so much into. Bankruptcy is just one option for homeowners. Visit Domain or contact an experienced bankruptcy lawyer as early as possible in the foreclosure process to learn about the steps that must be taken for a homeowner who is behind on their payments due to unemployment, illness or any other financial setback to keep their house.
