Save Your Home By Filing Chapter 13 - Is That Your Best Option??

Many people find themselves in a tough position when they’ve fallen behind on their mortgage payments and are unable to make them up. They try to negotiate with the mortgage company, enter into a loan modification, or some even try to borrow the money from friends or relatives. It’s a very scary to receive a Notice of Foreclosure especially when your options are limited. When people in this situation come into our office it’s important that as their potential attorney we delicately ask the question “Can you really afford to save your home?” This is a difficult topic and many people dismiss it when it’s first brought up, however, it’s important to realize bankruptcy should be a solution to your financial problems and bankruptcy should give you debt relief. The reality is sometimes financial challenges come up and we fall behind. This can be corrected by filing bankruptcy - Chapter 13, however, if the problem is you cannot afford your mortgage payment on an average month then bankruptcy will be nothing more than a temporary solution. I have this conversation with clients on a weekly basis and try to help people realize that a life in which your finances are under control is a life with much less stress and anxiety. When attempting to save your home it’s important that you weigh the pros and cons. If holding on to your home is going to leave you in the same position you were in or worse, choosing to keep your home may not be your best solution. There are many people who surrender a home within a bankruptcy and are later able to purchase another home when their finances improved. Surrendering a home in your bankruptcy does not mean that you will never own a home again it just means you are making the decision to get back on your feet and headed in the right direction when it comes to your finances.