The prospect of losing a family home is understandingly alarming and upsetting. As a result, it is important for those struggling with financial challenges to be aware of the personal bankruptcy options available to protect them. Personal bankruptcy options may be able to help protect a family home and may also help with foreclosure. The Chapter 13 bankruptcy process may help stop foreclosure which is why it is an option that is important to understand.
There are different types of personal bankruptcy protections available to help struggling individuals and homeowners. Chapter 13 bankruptcy is one option that may help with foreclosure and provide protection against foreclosure. Once a petition for Chapter 13 bankruptcy has been filed, an automatic stay goes into effect that halts all creditor collection actions while the bankruptcy process proceeds. This can provide breathing room for the filing party to get caught up on payments and prevent foreclosure.
It is important to timely file the Chapter 13 bankruptcy petition because it may not be able to help in circumstances when the foreclosure process has progressed upon a certain point. As a result, those considering options to protect themselves from foreclosure or considering Chapter 13 bankruptcy, should promptly consider their options sooner rather than later. Personal bankruptcy options are an important protection for homeowners and consumers to be familiar with.
Chapter 13 bankruptcy can help the filing party reorganize overwhelming debt and may also be able to help save a family home. Because there are different personal bankruptcy options available for different needs and goals, it is useful for individuals considering filing for bankruptcy to fully understand their options and how they may be able to help them enjoy debt relief.