Most homeowners in Indiana have no intentions of missing mortgage payments. There are many unexpected events that occur in life though that drastically reduce people’s income. They could lose a job or suffer major injuries that prevent them from working. When people are not receiving income, making mortgage payments can become very difficult. While the loss of income may be temporary, it may still be long enough for the mortgage company to begin foreclosure proceedings against the homeowner.
This can be a very stressful time for people. They can try to negotiate with the mortgage company to reach a resolution, but that is not always an option. People who find themselves in this unfortunate position also may have other obligations that they have fell behind on and have other debt building. While it may seem like there is no way out of all of the debt people could potentially rid themselves of the debt and even potentially keep their house through Chapter 13 bankruptcy.
How Chapter 13 bankruptcy can stop foreclosure
When people file for Chapter 13 bankruptcy, the foreclosure proceeding temporarily stops. It can also permanently stop the foreclosure process as well. Chapter 13 bankruptcy is generally for people who may have recently found a job or currently have a job as they will need to make monthly payments through the process. Through Chapter 13 bankruptcy a repayment plan is created and people’s debts are consolidated. They will then make payments on the consolidated debt as determined by the plan. These plans usually last three to five years.
To permanently stop foreclosure though, people will have to be able to continue making their ongoing house payments during this process. However, as long as people make all of their payments to the plan as well, they will be able to keep their homes even after they successfully complete the repayment plan.
Chapter 13 bankruptcy is not the best option for all people in Indianapolis who fall behind on their house payments. However, for people who have other debt and now have ongoing income sufficient to pay the ongoing mortgage, Chapter 13 bankruptcy can be a good way to not only keep their house, but also rid themselves of other debt. Experienced attorneys understand how scary it can be to receive a foreclosure notification and may be a useful resource.