Chapter 13 May Let You Save Your House
Most Americans don’t simply own a house. They live in their home. Years of birthdays, holidays, anniversaries, and little joys and tragedies have made their residence something far more meaningful than what economists would merely call part of the “housing stock.”
In the face of difficult financial circumstances, you may be facing a tough choice: do you let the bank foreclose on your home or do you declare Chapter 13 bankruptcy? When you’re facing this choice, it’s important to make a timely decision – and the right decision for you and your loved ones. Fortunately, the attorneys at the Dallas law firm of Fears Nachawati can help you make the right decision on the right timeline.
Chapter 13 is an imperfect solution, but for many debtors it is a solution. By agreeing to pay arrearages over the period of your repayment plan, you can take the time you need to get current on your mortgage. You may ultimately pay a little more as a result, but you’ll get to keep the home that’s become so meaningful to you.
Chapter 13 can also let you shed excessive debt loads that have built up on your house. Second and third mortgages, such as home equity lines of credit, may exceed the value of your house. If this describes your situation, your “secured” lender may actually be unsecured. These differences aren’t merely semantic. By “lien stripping” your home, you can significantly reduce your debt burden and make ultimate repayment a real possibility.
These legal options are complex. Trying to do-it-yourself can be time-consuming and, potentially, a fool’s errand. The professionals at our firm can help you answer your questions and get you started on the right foot down your path to Chapter 13.