A weak economic picture has resulted in your working hours being slashed in half. Now, instead of earning enough money to pay your bills every month, you are struggling.
You have cut back on all unnecessary spending. This includes cutting out cable and other expenses — but you are still unable to pay your mortgage, let alone other bills.
Bills are eating up your monthly house payments
Credit card bills are piling up. While you try to make at least the minimum payment on these bills, you still do not have enough money left for your mortgage payment. Your lender is becoming more direct about your account falling into delinquency.
Finally, you get a letter that tells you that, if you do not start making up past-due payments, your house will be foreclosed upon.
Not wanting to lose the home you have dreamed about, you learn that a bankruptcy filing may save your home. But, you wonder if this is even legal.
How filing for bankruptcy might help you keep your home
Filing for a Chapter 13 bankruptcy may legally help you to keep your house. If you opt for a Chapter 13 bankruptcy, this means you have to agree to a repayment plan with several of your creditors. This includes your mortgage provider.
If your provider refuses to accept a repayment plan, you may still be required to sell your house. However, because some providers know that getting paid is better than having to resell your home, they may agree to a repayment plan. Learn what your options are regarding bankruptcy and avoiding a foreclosure.