Falling on hard times can be frustrating, but the possibility of losing your home may be downright terrifying. When you’re struggling to keep a roof over your head, it may be time to look at the protection bankruptcy can offer.
Around 14 households face eviction every day in Louisville. That comes out to over 5,000 families booted out of their homes every year. If you’ve fallen too far behind on your payments, there’s a real chance you may contribute to that statistic. Though things seem bleak, filing for bankruptcy could help you pull through.
Picking the process
Going through bankruptcy can provide you with a roadmap for mending your financial situation. There are a few different forms to consider, but Chapter 13 allows you to draft a repayment plan if you still have money coming in.
Holding onto the house
While some types of bankruptcy will wipe many debts clean, one of the biggest advantages of Chapter 13 is that there are provisions for handling foreclosure:
- Pausing: The process will usually put a hold on your lender trying to sell your house, giving you time to make up lost ground. You’ll still be on the hook for mortgage payments, and you’ll need to make them on time.
- Extending: You can stretch out some other debts over the life of your repayment plan. This could lower those payments, giving you more money to put toward your mortgage.
- Silencing: You’ll likely get some relief from creditors so you can focus on getting back on track. They can’t start or continue collections at this time, and Chapter 13 payments are often made to a trustee, who will deal with paying those you owe.
Not everyone qualifies for Chapter 13 bankruptcy, and there are limits to how often you can get protections. But if you meet the requirements, you may have found a way to keep that roof where it belongs.