Individuals in danger of losing their home may not be aware that they can use chapter 13 bankruptcy to stop foreclosure in Greenbelt, MD. For those aware of this option, however, they may not know certain deadlines must be met in order to prevent the sale of the residence.
For these reasons, anyone at risk of foreclosure should seek legal advice immediately. Doing so ensures the homeowner knows all options available to them with regards to ownership of the home.
Filing Deadlines
In order to use a chapter 13 bankruptcy to stop foreclosure in Greenbelt, MD, the homeowner must file for bankruptcy prior to the foreclosure date. Furthermore, the plan laid out in the bankruptcy must account for repayment of all arrears on the mortgage.
For this reason, any homeowner who falls behind on their monthly payments should obtain legal help immediately. The sooner the process begins, the less that must be paid in arrears.
What Must Be Done After Filing?
Once a homeowner files for bankruptcy, they must immediately begin making mortgage payments again. Any missed payments at this time will be detrimental to the case, so timely remittance of each payment is crucial to the process. A missed payment provides the mortgage lender with the opportunity to alert the court to the missed post-petition payment and this could lead to the bankruptcy plan being rejected.
When Filing for Chapter 13 Bankruptcy Will Be of Help
Individuals who have had a setback but are now in the process of recovering will benefit from this option. Their financial situation has improved once again and the payments can be made as originally agreed. Be aware that many individuals in this situation may qualify for a loan modification, so they avoid bankruptcy completely. As a result, every homeowner behind on their payments needs legal advice now.
Many individuals will find they are eligible for a loan modification and can prevent foreclosure proceedings from the beginning. Those who are already in the midst of the foreclosure process may find filing for chapter 13 bankruptcy is what they need. It’s all a matter of understanding the options and the benefits and drawbacks of each.
