Can Filing For Bankruptcy Help With Foreclosure?

First, let’s discuss what it means to face foreclosure. This occurs if you have fallen too far behind on your home payments, insurance, or taxes, or if you have allowed the property to fall into a state of disrepair. Foreclosure is the process by which a bank then takes hold of your property and puts it up for sale through auction, and they collect whatever funds are earned from that sale in order to cover those outstanding bills and payments. 

While we understand that you want to avoid any instance of bankruptcy as much as possible, it sometimes is the only option available to you. There are different types of bankruptcy, but Chapter 13 allows those facing foreclosure to keep their home and assets while repaying back their debts to the appropriate parties. There will be a legally agreed upon repayment plan and timeframe for you to pay back these debts (this is typically between three and five years depending on a few different factors, such as your income and the amount to be repaid). 

Not everyone is deemed eligible for filing Chapter 13 bankruptcy. To find out if this is a feasible option for you, please contact Kenneth S. Borcia & Associates. Our bankruptcy lawyers and foreclosure attorneys want nothing more than to make sure you find a positive solution. 

If you are deemed eligible and maintain progress with Chapter 13 bankruptcy, you can save your home, repay your debts, and have a fresh start. Kenneth S. Borcia & Associates serves Lake County, North Chicago, Waukegan, Round Lake, Zion, Antioch and the surrounding areas. Contact our office today to discuss your options.