Foreclosures are not in anybody’s interest, whether it is the homeowner or the lender. When you file for bankruptcy, you stand a better chance of retaining your home if you can work out a fresh repayment plan with the lender; while the lender stands a better chance of recovering the loaned money than spending time and money on foreclosure.
If you are in Cleveland, Ohio, connect with an experienced bankruptcy lawyer in Cleveland who can guide you with the various aspects related to bankruptcy under the Bankruptcy Code and help you with best options to retain your home.
When should you consider filing for bankruptcy?
If you are finding it difficult keeping up with your mortgage repayments as well as falling behind on other routine payments, you may consider filing for bankruptcy. Your financial crisis could be due to any reason – unforeseen medical expenses, divorce, or job loss. Your bankruptcy attorney Cleveland can help you avoid a foreclosure and file for bankruptcy under Chapter 13.
Types of Bankruptcy – Chapter 7 and Chapter 13
Remember there are two types of bankruptcies, Chapter 7 and Chapter 13. Chapter 7 bankruptcy is also known as liquidation bankruptcy. In Ohio, you are entitled to a statutory homestead exemption. So, your bankruptcy trustee will liquidate the non-exempt assets in order to pay the lender. You have a good chance to retain your home if your net equity in the house is below the generous statutory exemption with your mortgage repayment being current. A good bankruptcy lawyer in Cleveland, OH will help calculate the equity precisely so you can take the best decision.
Chapter 13 is more of a debt re-organization plan where you can keep majority of your assets if you agree to make the legally mandated payments. So, your chances of retaining your house are higher in Chapter 13 when compared to Chapter 7. This is because your bankruptcy attorney will work out a repayment schedule where the payment due to the lender is also included. However, you will need to remain current on your mortgage repayments as well as the trustee’s payments. To learn more about the various provisions under Chapter 7 and Chapter 13 bankruptcies, ask your Cleveland bankruptcy attorney.
How can a bankruptcy lawyer help you in bankruptcy?
Many bankruptcy lawyers work closely with lenders so they can help restructure a fresh payment plan and save your house, or using Chapter 13 bankruptcy, cure the arrears. Your Cleveland bankruptcy lawyer should be able to guide you to select the most appropriate option according to your unique financial situation. A bankruptcy attorney will assess your financial health and determine if at all you are in a position to pay the mortgage payments if a fresh repayment plan were to be worked out. A bankruptcy attorney will discuss all available options with you such that you are able to weigh the pros and cons of filing bankruptcy and decide the best course forward accordingly.
Contact Mona Rubinstein, bankruptcy attorney in Cleveland, OH, for a consultation regarding your specific situation and know your options.