Facing a foreclosure can be excruciatingly painful. You may have tried a modification of your loan under the Obama Plan, or you may just have lost a job. Possibly your wife got sick and you just did not have the ability to take care of her and the house...so you made the choice you had to. Now the bank is following through with foreclosure proceedings. Many time clients come to our office and they are three months behind. They may have a house payment of $2,000 each month. That means that they are behind $6,000 and they have been told by the bank that unless they come up with that payment, the foreclosure sale will go through on the first Tuesday of the next month.
There is a way to stop the foreclosure and get caught up through a Chapter 13 Bankruptcy. That $6,000 can be paid back at around $100 a month for the next 5 years through the Chapter 13 Plan. In addition, most of the time all the unsecured debt is eliminated through the Chapter 13 just as if a Chapter 7 was filed. The overwhelming majority of the time in Chapter 13, we can reduce the payments on the cars.
If you file a Chapter 7 bankruptcy, then your can surrender your house and not be liable for the deficiency after the sale. However, if you want to save the home then it is important to seek your Chapter 13 rights at a free initial consultation with a lawyer who is an experienced bankruptcy attorney.