Falling behind on a mortgage is a source of stress for many homeowners. You might be attempting to find any way possible to catch up and get your finances back on track. As counterintuitive as it seems, it might actually be in your best interest to file for Chapter 13 bankruptcy.
The biggest threat to not paying a mortgage is the bank repossession your home and selling it. You could be facing foreclosure after only a few late payments. However, as soon as you file for Chapter 13 bankruptcy, an automatic stay gets placed on all outstanding debts. That means even if the bank has already said it is going to sell your home, filing for Chapter 13 would prevent the sale from happening.
Even though you still need to pay off your mortgage, Chapter 13 allows you to restructure the payment method. The amount you pay for Chapter 13 is based off how much income you bring in, so it is manageable to pay off your debts. Additionally, Chapter 13 only lasts for a maximum of five years, so after that period of time, you are off the hook.Make sure you go through bankruptcy the right way, so you end up on the other side of it all right. Speak with a bankruptcy attorney to review your options, call Lynch & Belch, P.C. in Indianapolis at 317-888-0006.