Bankruptcy As A Foreclosure Solution
Last updated on September 24, 2024
It typically takes three missed payments before your lender sends you a Notice of Intent to Foreclosure. After the first or second missed payment, they may contact you to determine how you plan to pay in the future. After all, the lender would rather that you make those payments and get current on what you owe. They view foreclosure as a last resort when it becomes clear that you’re not going to be able to pay. The entire process can take up to 15 months in Illinois, so it’s important to know what legal steps you’ll need to take as this process plays out.
Here at Frankfort Law Group, we understand that this is an emotional and stressful situation. Our team has more than 65 years of legal experience to draw from. We can offer compassionate guidance, but our lawyers will also aggressively fight for your rights. This may be the first time you have ever been through this process before, so it helps to have our team on your side. We offer free initial consultations with no obligation to hire us, so feel free to contact us to learn more about your options. One of those options is declaring bankruptcy.
How Does Bankruptcy Help With Foreclosure?
There are two main ways that bankruptcy can help if you’re facing foreclosure. First and foremost, it creates an automatic stay. This is a legal order that puts any other financial cases on hold. Your bankruptcy case has to finish before the foreclosure can proceed. Since bankruptcy can take months, this buys you extra time to consider your legal options.
The second way that bankruptcy helps is that it may give you options to seek greater financial freedom, which may help you save your house.
For example, you may use Chapter 7 bankruptcy to liquidate your non-exempt assets, or you may use Chapter 13 bankruptcy to combine your debt into an affordable monthly repayment plan. Either way, this may make it possible for you to afford your mortgage payments again. You can use bankruptcy as a tool to eliminate other debts, and that may help you and your family keep your home.
Call For A Consultation
These are just a few examples of how bankruptcy can help during foreclosure. Debt relief is complex, and you need to know your options. Contact our attorneys at 708-967-0819 or use the online contact form today.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.