Many New Yorkers have credit card debt, car loans, mortgages, personal loans, medical debt and other forms of debt. Most of the time, carrying these types of debt isn’t so bad. However, circumstances in life can change and sometimes they change quickly.
Some of these changes can make it difficult or even impossible to make the monthly payments on common debts.
The debt can begin to build and build in these situations. Debtors may receive many calls from creditors demanding payments or have judgments against them. They may also have their homes go into foreclosure if they are unable to make their mortgage payments.
People in this situation may be able to both rid themselves of their debt and potentially even stop the foreclosure process and keep their homes by filing for Chapter 13 bankruptcy.
Foreclosures may stop with Chapter 13 bankruptcy
When people file for Chapter 13 bankruptcy, the foreclosure process stops while a the debtor and the court develop a repayment plan. The mortgage payments can be included in the repayment plan and as long as people follow through with the repayment plan and continue to make their payments, they may be able to keep their homes at the end of the bankruptcy process.
When people have overwhelming debt and their houses are in foreclosure in New York, it may seem like they will lose everything. However, debtors may be able to rid themselves of their debt and still keep their house through Chapter 13 bankruptcy.
This option may not be the best option for everyone. It is important to understand the process and requirements of Chapter 13 bankruptcy to be sure it is the best option. Experienced attorneys understand the process and may be able to guide one through it.