Foreclosure can have a devastating effect on families. When a family loses their home, the children have to change schools and may lose their friends. Their new home, assuming they are able to rent a home after the foreclosure, will likely be much smaller. Kids might not have the privacy they enjoyed in their house and may become depressed over their circumstances. Fortunately, there is a way that many families can avoid foreclosure, even if the lender has filed the documents with court.
By filing Chapter 13 in Dayton OH, families may be able to keep their home and other assets. In order to use this law to keep property out of foreclosure, the family must have the financial means to pay the current mortgage and a portion of the past-due amount every month until there is no arrears on the loan. This is a particularly attractive option for people who had a financial setback but are able to resume making payments.
In addition to their home, families can include other outstanding debts in their bankruptcy. Credit card bills, car loans and student loans can be handled through the bankruptcy court. The way each of these debts is managed is different. For example, credit card debt that isn’t paid in full at the end of Chapter 13 in Dayton OH is discharged. In most cases, student loans cannot be discharged. However, the court can determine the payment amount on these debts, which can make them more affordable.
Chapter 13 bankruptcy allows families to remain in their home as long as they make the required payments to the bankruptcy trustee. Missing payments can result in the lender being allowed to foreclose on the property and the family will lose all the money the spent trying to keep their house. It’s essential that anyone who wants to use this method to keep their home have the means to make the payments for the entire bankruptcy term. An attorney may discuss other options with a family facing foreclosure to help ensure they use the debt relief option that is ideal for their situation.
