Will Filing Bankruptcy Stop Foreclosure On My Home?
Does this mean anybody who is facing foreclosure can use bankruptcy to their advantage? It is not this simple. For example, if you don’t have enough money to make your mortgage payment, bankruptcy in Columbus Ohio is not the answer. This is not going to lower your monthly payment or help you earn more money.
As noted above, a primary benefit of bankruptcy is the ability to halt the foreclosure process through enactment of the automatic stay. Lenders are not permitted to foreclose or attempt to collect debt until the court permits them to do so.
Chapter 13 Bankruptcy to Stop Foreclosures
On the other side of things, you can consider a Chapter 13 bankruptcy in Columbus Ohio. This is more effective for people who are attempting to stop foreclosure and keep their home. They are given the time necessary to get their finances back on track (as long as five years). During this time, you will be placed on an income-based budget with monthly payments made to a trustee. A trustee is staffed with the responsibility of following the repayment plan, which places priority on secured debt.
If you are under the impression that filing bankruptcy in Columbus Ohio is a simple way to permanently stop foreclosure, you are mistaken. There is a lot that goes into this process, and as noted above you may not come out the other side as clean as you would like.