Facing Foreclosure? Bankruptcy Might Be a Good Option
No homeowner wants to consider foreclosure when they are buying their home. Unfortunately, for many Americans and Delaware residents, it is possible to fall behind on mortgage payments. When this happens, you could face foreclosure, which means the bank or lender can take legal steps to repossess your home and sell it to pay for the mortgage arrears and legal costs.
How a Foreclosure Lawyer in Delaware Can Help
In some cases, filing for bankruptcy can help you save your home and other important assets. If you file for Chapter 13 bankruptcy, for example, you may be able to pause action on the foreclosure process and set up a payment plan to pay what you owe. Unfortunately, this means you will need to show you can pay for current mortgage payments and the arrears, which may not be possible if you are struggling to pay what you owe.
Chapter 7 bankruptcy is another option. In this bankruptcy proceeding, the mortgage and tax liabilities on your home may be forgiven. However, this bankruptcy will not lift the lien on your home, and since your home is the collateral for the lien, you will still lose your home if you cannot pay what you owe.
Even if you cannot save your home by filing for bankruptcy, however, you may be in better financial shape by filing. When you file for bankruptcy, you may be able to eliminate the debt, which means you will not owe money to the lender and will be able to start over fresh, rebuilding your finances and your credit. Reach out today for help.