Saving your Norfolk Home with a Chapter 13 Bankruptcy
If you recently went through a rough divorce, faced a major illness, were laid off from work, or faced some other situation that caused you to fall behind on the mortgage payments, a Chapter 13 bankruptcy in Norfolk may be your saving grace. After working years to purchase and maintain a home, the last thing you want is to lose the property to foreclosure but unless you take quick and appropriate action, this is a real possibility.
The best thing you can do is find a well-qualified bankruptcy attorney in Norfolk and discuss the pros, as well as cons of a Chapter 13 situation. Although there are other options for bankruptcy, this particular type will provide you with the opportunity to get your payments back on track.
Unlike Chapter 7 bankruptcy in which most, if not all of your assets are liquidated in order to repay creditors, a Chapter 13 gives you three to five years on average to get completely caught up. The good news is that working with a reputable bankruptcy attorney in Norfolk is a viable option for saving your home. However, the flip side is that the bankruptcy will remain on your credit report for several years.
Benefits of a Chapter 13
With a Chapter 13 bankruptcy in Norfolk, what happens is that an automatic stay goes into immediate effect. This means if your home is on the verge of going into foreclosure or the mortgage company is getting ready to sell it, the action is stopped. This “stay” period remains in effect as long as you continue to make payments according to the established payment plan.
Another benefit of filing a Chapter 13 bankruptcy in Norfolk is that outstanding debt can be reorganized through a repayment plan that has been approved through the court system. Using your current income and ability to make payments on time, the plan is devised. Included in the repayment plan are any of the mortgage payments that were missed.
In other words, for this court ordered plan you will pay back the missed payments on the home but also be required to make the regular monthly payments. By working with a good bankruptcy attorney in Norfolk, you can weigh all the pros and cons to determine if Chapter 13 is the best solution for your financial problem.
If you and the attorney feel there is no way to get caught up with a Chapter 13 bankruptcy in Norfolk, remember you have other options. Although this could result in you losing the home, it is important to look at your financial situation not just short-term but also long-term. By going through the right bankruptcy now, you have a chance to quickly get back on track and start rebuilding rather than prolonging the inevitable.
A bankruptcy in Norfolk of any kind is going to be heart wrenching, especially if you have tried multiple things to retain your assets and possessions to no avail. At some point, a hard decision must be made. Just know that you are not alone in this battle. Along with information provided by the attorney, it is highly recommended to gain insight through local and national service sites like Bankruptcy-America.