Gain Control of Your Debt. Keep Your House or Vehicle.
If you are overwhelmed with debt, bankruptcy will not solve all your problems, but it can be an excellent way to get relief from the pressure of being unable to pay all your bills, and the frustration of being harassed by bill collectors. For some consumers, Chapter 7 bankruptcy provides a way to get out from under debt that they simply cannot afford -- by providing a fresh start -- while others have good reason to take advantage of the benefits of Chapter 13.
Chapter 13 bankruptcy is commonly used by people who either do not qualify for Chapter 7 because of their income or who are concerned about losing a house, a car or another important asset. The beauty of Chapter 13 is that in many cases it can enable a person to prevent foreclosure on his or her home or stop repossession of a vehicle while at the same time discharging some or all of that person's debt through an affordable debt repayment plan.
Foreclosure and Repossession
If you are worried about losing your home to foreclosure, there are several important things to understand. First, your house is yours until it is actually sold at auction via a sheriff's sale. Typically, the sheriff's sale does not happen until you are many months behind on payments. Receiving a threatening bank letter, a notice of default or a legal complaint doesn't mean that you've been foreclosed on, since foreclosure is a process, not an event. Secondly, regardless of how aggressive and unhelpful your mortgage servicer's employees may seem to you on the phone, your mortgage lender would usually much rather work out a payment arrangement with you-- not so you can keep your home, but so that it can continue to get its payments on the debt. That being said, if your house remains unaffordable to you, you will probably not be able to stay in it longterm.
If you choose to reorganize your debt through Chapter 13 bankruptcy (or to get on top of your debt through other means), you may be able to keep your house. Many consumers find that once they get their unsecured debts (credit cards and medical debt, in particular) under control through a bankruptcy filing, their house payment becomes affordable. In addition, they can pay all their household bills, such as their utility bills, every month. Other people are able to get caught up on missed mortgage payments by including the arrears or missed mortgage payments in their Chapter 13 payment plan.
The same principles apply to vehicle repossession and to your vehicle financing. Chapter 13 can help some people keep a vehicle by getting their unsecured debts wiped away or reduced, which allows them to use more of their money for transportation by including missed car payments in a repayment plan. In some cases, Chapter 13 can be used to get a car back after it has been repossessed.
Talk to a Westmoreland County Attorney. Stop Foreclosure and Repossession.
The Greensburg Chapter 13 bankruptcy attorneys of Stewart, McArdle, Sorice, Whalen, Farrell, Finoli & Cavanaugh, LLC, can answer your bankruptcy questions and advise you on the pros and cons of each type of filing. If you qualify and choose to file a Chapter 13 or a Chapter 7, we will take care of all the necessary paperwork and arrangements. Contact us for a free bankruptcy consultation with an experienced Pennsylvania lawyer.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.