Tulsa Bankruptcy Attorneys Explore Foreclosure
Falling behind on your mortgage payments then receiving notice of an impending foreclosure is one of the most frightening things anyone can experience. For many families, their home is a loved sanctuary and losing it would be devastating. Some families have considerable equity in their homes and do not want to lose this. Foreclosure is one of the main reasons people file for Chapter 13 bankruptcy. When loan modifications fail and short sales are not the right answer, a Chapter 13 bankruptcy will generally succeed. In a Chapter 13 bankruptcy, your lender will be forced to accept late mortgage payments that will be included in the three to five year repayment plan that you create and the court approves. Once you have completed the repayment plan, your lender cannot re-initiate the foreclosure action. In short, you can save your home from foreclosure through Chapter 13 bankruptcy. Call our Tulsa Oklahoma Foreclosure and bankruptcy attorneys for a free consultation.
How Chapter 13 Bankruptcy Stops Tulsa Foreclosure
When you file for Chapter 13 bankruptcy, you will benefit from a federal law that prevents creditors from continuing any collection efforts. This includes the continuation of foreclosure proceedings. Accordingly, if your home is set to be foreclosed on Wednesday and you file on Tuesday, the foreclosure would not proceed. This halting action is specified in Section 362 of the U.S. Bankruptcy Code. If you are facing foreclosure, consult with a bankruptcy attorney to find out more information on halting the proceedings with Chapter 13.
How Chapter 13 Bankruptcy Can Save Your Tulsa Home from Foreclosure
There is a common misconception among most people that you will lose your home if you declare bankruptcy. In Chapter 7 bankruptcy, this statement is often accurate. If you default on your mortgage and file for Chapter 7 bankruptcy, while the foreclosure will initially be halted, it will generally be able to continue. This is because Chapter 7 bankruptcy does not provide debtors with a chance to repay their mortgage arrears. After a Chapter 7 bankruptcy is completed, the mortgage will still be in default and the lender will still be able to look to the secured asset, the home, for repayment.
In a Chapter 13 bankruptcy, however, debtors are able to repay their mortgage arrears in a three to five year repayment plan. The repayment plan is developed by the debtor and his or her attorney, then approved by the creditors and the court. After the mortgage holder receives the late mortgage payments through the three to five year repayment plan, the debtor is no longer in default of the mortgage and the lender cannot re-initiate foreclosure proceedings. The debtor can continue paying off the mortgage as scheduled and is free to enjoy their home while building equity in it.
Anyone facing foreclosure should consult with our Tulsa Oklahoma bankruptcy and Foreclosure attorneys as soon as possible to explore your rights and legal options.
Midtown Tulsa Bankruptcy Law Office: Experienced Tulsa Oklahoma Foreclosure and Bankruptcy Attorneys
If you are facing foreclosure on your home, the Tulsa Bankruptcy Attorneys at Midtown Tulsa Bankruptcy Law Office can help. We are experienced in the unique field of Chapter 13 bankruptcy and can evaluate whether this is a viable option to save your home from foreclosure and set you on the path to financial well being. When you come into our office, we will evaluate your debts as well as your overall financial picture, including assets and income, to provide an accurate picture of your bankruptcy options. We will never push you towards bankruptcy and will always explain the full range of your rights. Call the bankruptcy attorneys at Midtown Tulsa Bankruptcy Law Office today at 918-739-8984 to schedule your free consultation.
Tulsa Oklahoma Foreclosure and Bankruptcy Attorneys
http://tulsabankruptcylawyers.net/tulsa-oklahoma-foreclosure-and-bankruptcy-attorneys/
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