Saving Your Home

Franklin Bankruptcy Attorneys

As a homeowner, even if you are drowning in debt, you may still want to save your home. A Chapter 13 bankruptcy is designed to stop a foreclosure and may be the action you need for debt relief and protection while you catch up on past-due mortgage payments and other debts. In some cases, individuals file for a Chapter 13 bankruptcy for the specific purpose of stopping a foreclosure. If you need information and guidance on how to save your home with a Chapter 13 bankruptcy, contact a Franklin bankruptcy lawyer at our firm to discuss your needs. Our firm focuses on all types of bankruptcy cases and serves all of middle Tennessee, including Williamson County, the cities of Franklin, Brentwood, Spring Hills, Fairview, College Grove, Columbia, Lewisburg, Lawrenceburg, and Centerville.

Saving Your Home through a Chapter 13 Bankruptcy

Once a Chapter 13 Petition has been filed with the court, an automatic stay is imposed by the court which stops collection actions, such as foreclosures, no matter how far along in the process the foreclosure may be. This provides the homeowner and his bankruptcy lawyer the time needed to work out a repayment plan to submit to the court. This repayment plan will last for 3 to 5 years, depending on various factors. During this time, homeowners must make mortgage payments that they owe. Failure to make current mortgage payments may result in a lifting of the automatic stay imposed by the court, which will allow the lender to continue foreclosure proceedings. If the homeowner makes the mortgage payments during the repayment plan period in a timely fashion, at some point he may be eligible to refinance the property or work out a loan modification.

Remember that a lender or mortgage company would prefer to receive regular payments from their borrowers. The lender doesn't really want the property back and will only foreclose as a last resort to a loan in default. Talk to a Williamson County bankruptcy attorney at our firm if you need further information about how you may save your home or other debt relief issues.