Mounting debt from house payments that you're unable to make on-time can overwhelm you financially and land you in trouble with lenders. Any lenders who provided financing for you to purchase your home may also report you to collectors if you default on your payments, which can make your situation even more difficult.
Bankruptcy may be an option for you that allows you to absolve yourself of your financial debt. If you're thinking of filing for bankruptcy, a bankruptcy attorney can try to help you in the following ways.
Stop Harassment From Collectors
The debt collectors who are hired by creditors to try to recoup their money often use aggressive tactics when dealing with debtors. These collectors often resort to making threatening phone calls and sending threatening letters to try to get debtors to comply. Some collectors may even try to call you at work or contact friends or family members. If you file for bankruptcy, your bankruptcy lawyer will work to enforce the laws that prohibit collectors from harassing you again.
Help You File Under the Right Chapter
Bankruptcies that involve real estate matters are generally filed under Chapter 7 or Chapter 13. If you file under Chapter 13, you'll likely be able to keep your property while absolving yourself of any remaining debt. However, your bankruptcy attorney may advise you to file under Chapter 7 and possibly surrender some of your property depending on your specific circumstances.
Attend Your 341 Meeting
A 341 meeting with creditors may be scheduled to try to work out an agreement concerning your debt. This meeting might take place in a courtroom or another professional setting. Your bankruptcy lawyer can attend this meeting with you to try to negotiate with the creditors and make sure that everything is being handled lawfully. The outcome of this meeting may improve your circumstances, and your attorney will try to help you achieve the best result.
Help You Avoid Lawsuits
If you want to avoid getting sued by lenders for money that you owe, your bankruptcy attorney can help protect you against lawsuits. In most cases, creditors won't be able to sue you once you've filed for bankruptcy and the request has been granted. By avoiding lawsuits, you'll also have a better chance of keeping your home and not having it seized.
A bankruptcy attorney will do everything possible to protect your home and give you a fresh financial start. Contact a bankruptcy lawyer to learn more about your legal options.
Welcome to my website. My name is Larry Silva, and I want to talk a bit about private mortgage insurance. You may have heard the term PMI mentioned when you were in the process of purchasing real estate. When I first heard my lender talking about PMI, I was very confused. It was my realtor who sat me down and explained what private mortgage insurance was and when someone is required to purchase it. He told me that PMI is not lifelong insurance; it can be cancelled when the mortgage principal balance reaches a certain point. Once it was explained to me, private mortgage insurance was no longer a mystery or a confusing concept. I would like to pass on what I learned and hope that you find it to be of value.