When the housing market collapses, homeowners can only stand by and watch as their most valuable investment becomes their greatest liability. Unable to sell their home for a profit, many homeowners in a downwards market are forced to make a difficult decision: fall further into debt or relieve the burden by seeking foreclosure.
At Kruger & Schwartz, we've seen individuals and families struggle with the real and oftentimes difficult decision to turn over their keys and walk away from their homes. We've seen the emotional impact this has and the damage it can do to their credit score. This is not a burden we want anyone to bear, which is why for several decades now, attorney Richard A. Schwartz has been helping homeowners in Kentucky and Indiana understand all of their debt relief options, including bankruptcy.
Save Your Home With Chapter 13 Bankruptcy
A Chapter 13 bankruptcy has two components that make it ideally suited to saving your home from foreclosure:
- Automatic stay — Foreclosure activity must cease when you file for bankruptcy.
- Repayment plan — The repayment plan can be used to take the missed payments on your mortgage and spread them over the three to five year period of the plan. Successfully completing the plan will leave you current on your mortgage.
Get Out Of Debt With Chapter 7 Bankruptcy
The problem oftentimes facing homeowners is that their home's value is less than what they owe on their mortgage. If the bank sells a foreclosed home for less than what is owed, the difference is called a "deficiency." In the end, the bank can sue for that deficiency, costing someone more than just their credit score.
Chapter 7 bankruptcy can help you eliminate the "deficiency" whether you file before or after the foreclosure sale.
We Give You Options That Work For You
There are a lot of important things to consider when facing a considerable amount of debt. One of these things is your home. At Kruger & Schwartz, we help you realize the other options to foreclosure, such as seeking a short sale, in hopes of saving you from unnecessary burdens down the road.
To schedule a free initial consultation with one of our attorneys, contact our firm online or call either our Louisville office (502-485-9200), our New Albany office (812-945-9200) or toll free (866-366-3328). Weekend, evening and in-home appoints are available.