Chapter 7 vs. Chapter 13 Bankruptcy and Foreclosure
Financial difficulties and the threat of bankruptcy can create a very stressful time in your life. It can be even more trying if you include the possibility of losing your home because of foreclosure. Both foreclosures and bankruptcy filings have significantly increased over the past five years because of the economic downturn. Fortunately, though, filing for bankruptcy may be able to save your home from foreclosure.
The two most common bankruptcy options for individuals are Chapter 7 and Chapter 13. Each chapter is unique and affects foreclosure differently. If you are at risk of losing your home because of missed or late payments on your mortgage, you need the help of a legal professional to guide you. Contact the Boca Raton foreclosure defense lawyers of Eric N. Klein & Associates, P.A., today at 561-353-2800 and schedule a free consultation with one of our experienced lawyers.
Bankruptcy Chapters and Foreclosure Defense
Picking the right bankruptcy chapter is important to your financial future. Chapter 7 bankruptcy lets one liquidate some assets to repay lenders while Chapter 13 bankruptcy lets the filer work out a repayment plan. In regards to foreclosure, there are a few key differences between with the two chapters, including:
Chapter 7 – if you have not already received a foreclosure notice, filing for this type of bankruptcy may allow you to keep your home for a short time during the proceedings. Homes are generally classified as “exempt” property that is immune to liquidation.
Chapter 13 – you can file for this bankruptcy as long as your unsecured and secured debts are not over a certain limit. Filing for bankruptcy can help you restructure your debt and work out a plan to repay the debt over a period of time to get back on track with your mortgage.
A knowledgeable foreclosure defense legal team can help guide you through this difficult time and help you choose the best bankruptcy type for you.
Contact Us
The threat of foreclosure is intimidating, but an experienced attorney can help. To ensure that you make the best decision for you and your family regarding your finances, contact the Boca Raton foreclosure defense attorneys of Eric N. Klein & Associates, P.A., at 561-353-2800.
