Foreclosures and Chapter 13 Bankruptcy Lawyers in Jacksonville
Serving Jacksonville, Jacksonville Beach and clients throughout Florida
If you are thinking of filing bankruptcy, your first concern will be your home. Can you keep it? Will it be liquidated? Perhaps you are turning to bankruptcy as a way to save your home.
The good news is, bankruptcy is a powerful tool that may be able to save your home from foreclosure. Chapter 13 bankruptcy is specifically designed to help homeowners avoid foreclosure and provide them with the protection (and relief) they need to catch up on debts and keep their home in the process.
Foreclosures and Chapter 13 Bankruptcy
A home foreclosure is a process initiated by the lender of your mortgage. They will have a lien on the personal property that you have financed through them, and if you default on the property’s payments, then they can foreclose the property.
Typically you have to be several months behind on payments in order for the foreclosure process to start. But, some will start it within 16 days. You can work out a repayment plan with the lender rather than file for bankruptcy, especially if you are not too far behind. But, if you fall behind too much you may have a few ways to save your home without bankruptcy:
- If you have enough equity in the home, consider a refinance and use the equity to pay off the past due balance.
- Discuss a loan modification with the lender to help get back in control of your payments and save your home.
If the home is 90 days past due, however, or if you have no way to refinance, then it may be best to use Chapter 13 to stop the foreclosure and save your family’s home.
Can Chapter 13 Really Stop Foreclosure?
There are plenty of homeowners who use Chapter 13 as a way to avoid foreclosure. Even if they do not have other debts, filing for bankruptcy may protect their home. With Chapter 13 bankruptcy, you will be given an opportunity to repay a portion of your debts and back owed mortgage payments through a court-ordered plan. But, in order to do so, you need to qualify.
Do You Qualify for Chapter 13?
Qualifying for Chapter 13 bankruptcy is not difficult, but you must meet certain criteria in order for the courts to allow you to enter into a payment plan. Just some qualifications include:
- Having a solid, predictable amount of income each month – and prove that income is steady.
- Being able to stick to a strict repayment plan to get out of debt.
- Being able to follow a budget and willingness to hand over disposable income to the court, including any tax refunds or bonuses you may receive.
Halting the Foreclosure Process with an Automatic Stay
When you file for Chapter 13 bankruptcy, you get an automatic stay. This means that the court will stop the lender from foreclosing on the property. The lender can continue to collect and foreclose if your repayment plan doesn’t include your past due mortgage payments. Therefore, it is important you work with a skilled a chapter 13 bankruptcy lawyer in Jacksonville that knows how to include mortgages so that you ensure your home is protected.
Modification of Mortgage
The Chapter 13 plan may allow you to modify some debts for your secured property, especially if the amount you owe is more than what the property is worth. This type of modification is complicated and requires the assistance of an attorney. You may qualify to cram down your mortgage if:
- The mortgage is for a multi-unit building.
- The loan is for other property that is not part of the residence (such as farmland)
- The loan is for a mobile home.
- The loan is not secured by your residence.
Save Your Home – Meet with a Chapter 13 Bankruptcy Lawyers in Jacksonville Now
The only way to know if you can save your home from foreclosure is to meet with a bankruptcy attorney today. The team at Hardesty, Tyde, Green & Ashton, P.A. can review your foreclosure case and see if Chapter 13 bankruptcy will save your home. We can negotiate with your lender and possibly get a loan modification approved so that even if you do not qualify, you can save your home from foreclosure.
Call us today to schedule a free consultation with a bankruptcy attorney by dialing 904-398-2212.