We are bankruptcy attorneys located in Middletown, Ohio. Our main focus of practice is bankruptcy. We have been serving Southern Ohio for more than 20 years.
Sometimes we get in over our head, things happen that are out of our control. Job loss, a medical emergency or a number of other issues could put you into this out of control spiral. You have to eat and keep on your necessary utilities so that you can live and sometimes when this happens you may fall behind on your mortgage payments. This is a scary thought, but it happens. You just want to hide under the covers and hope that this situation will go away, of course, that is not going to happen, but things usually do get better and seem to work themselves out. You will still have time to fix things. A mortgage company will not usually start a foreclosure proceeding against you until you get about 3 months behind on your mortgage. Once a foreclosure is started it will take approximately 6 months for it to complete. Once a foreclosure is complete then your home will be transferred out of your name and you will have lost your home. But you can stop this process if you want.
Most times we are able to pull ourselves out of that hole. You find a new job or go back to work after your medical emergency and now you are back on top, but you may still be behind on your bills and mortgage and still in danger of losing your home. Once you become so far behind on a mortgage the lender usually will want all of the funds that you are behind on before they will stop your foreclosure proceeding. Most people are not able to come up with this large sum of money..but don’t worry there are still options.
CHAPTER 13 BANKRUPTCY
Once you become so far behind on your mortgage as I stated above most lenders will want all of the funds you are in arrears with them. Most people do not have these funds available, especially after rebounding from some medical or other catastrophic event in their lives. This is when you need to come and talk with an attorney. Chapter 13 bankruptcy is available. Chapter 13 is able to save your home. Once you are under the protection of chapter 13 your mortgage company must stop all foreclosure proceedings, you will be under the protection of the federal government. In your case you will have 3 to 5 years to pay back the arrears to your mortgage lender. Your mortgage company must comply with these rules. They will have to file a document with the court called a proof of claim to be paid. They will be paid all of the arrears you owe and your regular mortgage payments going forward. These payments will be made by the Chapter 13 Trustee. When your case completes the Trustee will file documentation stating that all payments and arrears have been paid in the case, at this time the mortgage company will have a chance to agree or object and once the case completes they can not come back on you for additional fees. This is a good thing.
As far as your unsecured debts, chapter 13 can help you with that too, as you will be only paying back a percentage of these and all interest will stop.
For more information check out our website at www.middletown-bankruptcy.com.
If you are struggling with your mortgage or other debts call us today. We offer a free consultation, fair fees and monthly payment plans. We can help you get out of debt and save your home.