The alarming rise in the rate of foreclosures across the nation has been a familiar topic in the news over the last several years. Many families who have never had any financial difficulties are now struggling to keep their homes. For a large percentage of them, losing their homes through foreclosure will become an unavoidable reality. But in other cases, families who are fearful of losing their homes to foreclosure can find relief through federal bankruptcy laws. If you and your family are facing foreclosure, find out how filing bankruptcy in Muskogee can help you keep your home.
Foreclosure in Muskogee
Foreclosure usually doesn’t happen until you are several months behind in your mortgage payments. At this time, the lender will notify you that you are in default and allow you time to get caught up with your payments. If you do not get caught up during the time allotted, the lender will then notify you of its intention to offer your home for sale at public auction, typically within 30 days.
By that time, if you still haven’t resolved the issue, your home will be sold and you will lose the chance to redeem it, unless your state allows a “redemption period” following the sale. In Oklahoma, it takes 15 days for the sale to be confirmed by the courts. During this time, you can redeem your home by paying off the entire balance of your mortgage.
How Filing Bankruptcy Can Help Keep Your Home in Muskogee
Often, lenders are willing to make arrangements with you to get you out of default and to keep your home. But when this is not the case, you will be left with few choices, and bankruptcy may be the best option available.
The two main types of bankruptcy proceedings are Chapter 7 and Chapter 13. Under each, an “automatic stay” goes into effect as soon as you file and the foreclosure process is put on hold until the end of your bankruptcy or until the stay is lifted by court order.
Filing Chapter 7 Bankruptcy Can Help You Keep Your Home
Filing Chapter 7 will usually give you about four months before the foreclosure process resumes. Ultimately, Chapter 7 will not stop foreclosure, but the delay may give you time to arrange for its eventuality and prepare to move on. Also, during the bankruptcy period, you will be allowed to stay in the home without making any payments, which can give you the chance to save money to find someplace else for you and your family to live.
Filing Chapter 13 Bankruptcy Can Help You Keep Your Home
Chapter 13 bankruptcy can actually stop a foreclosure, if you file early enough. This is possible because Chapter 13 allows you to propose a plan to reorganize your debt and get caught up with your loan payments. If you can achieve this within the allotted time (three to five years), you will be able to avoid foreclosure and keep your home.
You must first, however, qualify for Chapter 13 bankruptcy and have the court approve your reorganization plan. In order to do this, you must have enough income left over to make steady payments after first satisfying certain other debts, such as child support, alimony and taxes, which have priority over your mortgage.
Low-cost Consultation: Muskogee Bankruptcy Attorney
Don’t let your financial problems get worse; get help today by calling Wirth Law Office – Muskogee at (918) 913-0725, or toll-free at 1-(888) 947-8452 (Wirth Law) for a initial strategy session with a skilled Muskogee bankruptcy attorney. If you prefer, you can use the box in the upper right corner to send us a short message.
