Managing household finances often means deciding what bills to pay and when. Sometimes, past-due bills or unusual expenses will take precedence over recurring monthly ones.
If you have prioritized other bills over the payment of your mortgage in recent months, then your lender may have sent you a notice notifying you that they’re initiating foreclosure proceedings
Receiving that letter might make you feel hopeless, but you still have options. Bankruptcy could be a way for you to regain control over your finances and get your mortgage back in good standing.
Filing for bankruptcy will temporarily delay foreclosure
The automatic stay you receive when you file for bankruptcy will immediately stop creditors from taking additional action against you. It can temporarily halt foreclosure proceedings and other pending lawsuits, giving you a chance to adjust your budget and catch up on missed payments.
Filing for bankruptcy can help you renegotiate the terms of your mortgage
Your lender may willingly work with you to make the mortgage easier on you when you file for bankruptcy. Even if your lender isn’t eager to cooperate, a Chapter 13 filing could be an adequate reason for them to restructure your mortgage.
You may be able to reduce your payments or extend the repayment period so that you can stay in your house and not have to endure foreclosure because of a few missed payments. Protecting the value built up in your home can be one of the most important considerations when dealing with financial instability.