Once you know that you are filing for bankruptcy and the procedure has been started no doubt you are breathing a sigh of relief now that you don’t have to deal with the incessant calls and demands for payments from your creditors.
As a home owner what you must focus on is keeping up with your mortgage payments even during your bankruptcy action. If you don’t, you run the risk of losing your home. While your bankruptcy, particularly if it is a Chapter 7, is going to wipe out the majority of your personal debts, you have to realize that it is not going to eliminate debts such as those that are secured, such as a mortgage.
In the majority of cases, a mortgage utilizes the home as the security and if there is non-payment then they will foreclose on the house. If a foreclosure has begun then you may be able to get an automatic stay during the process of your bankruptcy until it is determined how the home will be dealt with. Your Debt Relief Attorney can help explain how to ensure you get an automatic stay.
Whether it is a first or second mortgage is also going to be important. How the second mortgage will be handled will depend on the value of the home compared to the balance of the first mortgage. Bankruptcy laws also vary from state to state.
It is highly important that you utilize the services of a bankruptcy attorney to not only help you determine which chapter you are going to qualify for the bankruptcy, but also to assist you in navigating the entire bankruptcy process. There will be many decisions that you will need to make during this time and you need to make the proper ones in order for your bankruptcy action to be most advantageous to you.
Contact our Louisville Bankruptcy and Kentucky Debt Relief Attorneys today to save your home, and get out of debt.