Owning a home and managing your mortgage can be a difficult task that takes a large amount of financial planning and preparation. If you’ve fallen behind more than three months, your property may be threatened by foreclosure. Foreclosure means that the creditors repossess any property and sell the house at an auction. The profits go to repaying the mortgage, taxes, and any legal fees associated with your foreclosure.
When you file for bankruptcy, the court will issue an Order of Relief to create an automatic stay. This informs any creditors that they must cease collection attempts until the bankruptcy is completed The two options for a consumer bankruptcy are Chapter 7 bankruptcy and Chapter 13 bankruptcy.
With Chapter 7 bankruptcy, it may be more difficult to keep your home due to New Jersey exemption rules. On the other hand, a Chapter 13 bankruptcy could be the right choice for bringing your mortgage back into good standing and keeping your home. This type of bankruptcy creates a repayment plan to pay off debts. This is a way you can avoid foreclosure and stay in your home while getting your mortgage payments back on track. In some cases, Chapter 13 bankruptcy also can help relieve you of debt from 2nd and 3rd mortgages.
Questions About Bankruptcy?
Our New Jersey bankruptcy lawyers help individuals and businesses seek debt relief. If you have questions about filing for bankruptcy, whether for yourself or for your business, then we are here to provide answers. You may contact Garland & Mason, L.L.C by using our online contact form or by calling (732) 358-2028.