Homeowners do all they can to make their mortgage payments on time so they can protect their investment. Unfortunately, issues can begin to arise that cause a person to get behind on their payments, which can end up leading to foreclosure in Cincinnati, OH. Thankfully, there are ways a person can avoid the foreclosure process and protect their home. With this information, individuals can learn how bankruptcy can help them keep their home.
While there are two types of bankruptcy, there is one that is more beneficial to those who are dealing with the risk of losing their home to foreclosure in Cincinnati, OH. Chapter 13 bankruptcy allows a person to start a restructured payment plan so they can pay off their debts in a reasonable amount of time while stopping all forms of collection activity.
If a foreclosure is already in progress, bankruptcy will probably not be helpful. It is important a homeowner does not ignore any collection attempts because the mortgage company will eventually start the process of foreclosure. As soon as a homeowner learns they are going to have trouble making their payments, it is crucial for them to contact their mortgage company to see if any restructuring can be done.
Meeting with an attorney will allow a homeowner to learn more about any options and what will need to be done so they can be approved for bankruptcy. A restructured payment plan must be submitted to the court and be approved by the judge. Once the payment plan is in place, it is imperative a homeowner makes their payments on time and sticks with the plan so their bankruptcy will stay in effect.
Most individuals and couples are given three to five years to pay their debts through the payment plan. The amount of time given will depend on how much income a person has each month and the amount of debt they owe.
If you are facing losing your home to foreclosure and would like to learn about your legal options, Contact us for a free consultation so you can get started on the process to be free of your debt.