Foreclosure Lawyer in Kissimmee

Bankruptcy May Be an Option to Avoid or Delay Foreclosure

One weapon against foreclosure is another type of litigation: bankruptcy.  Filing for bankruptcy to avoid foreclosure on your home has both advantages and disadvantages.

Brian M. Mark helps his clients weigh and balance the advantages and disadvantages to bankruptcy.  Consult with Kissimmee foreclosure lawyer Brian M. Mark to determine if bankruptcy is the right choice for you to avoid foreclosure.

Kissimmee Foreclosure Help

Advantages to Using Bankruptcy to Avoid Foreclosure

When you file for bankruptcy under either Chapter 7 or Chapter 13, the Bankruptcy Court issues an automatic stay, which requires that your creditors cease their collection actions immediately.  At the very least, the automatic stay delays your foreclosure action.

Chapter 7 bankruptcy cancels the debt that is secured by your home, including your mortgage, your second mortgage, and home equity loans.

Chapter 13 bankruptcy allows you to pay off your arrears on your mortgage over the length of your repayment plan.  If you keep up your payments, you will avoid foreclosure.

Disadvantages to Using Bankruptcy to Avoid Foreclosure

Chapter 7 bankruptcy discharges the debt you incurred when you bought your home; however, it does not remove the lien that was recorded against your home.  As a result, Chapter 7 bankruptcy cannot cancel a foreclosure.

For a Chapter 13 bankruptcy to work, you need enough income to at least meet your current mortgage payment at the same time that you are paying off your late payments. 

Let Brian M. Mark help you sort through the advantages and disadvantages of using bankruptcy to avoid foreclosure. Contact us for a free consultation.  Call 407 705-3566 for a Kissimmee foreclosure lawyer.