They say, “Home is where your heart is.” What if your heart leaps every time there is a knock at the door? Do you consistently check the caller ID before answering the phone? Are you avoiding the mailbox, which is now stuffed to overflowing will bills and notices? Spending sleepless nights in fear of losing the family home to foreclosure and repossession? Maybe your application for Chapter 7 bankruptcy was denied because you make too much? If you answered “Yes” to any of the above, you might benefit from Chapter 13 bankruptcy and its provision for you to keep your house and car.
Do you have a regular income?
Unlike Chapter 7 which wipes away debt, Chapter 13, also known as “reorganization bankruptcy,” has a court-instructed repayment plan. This means that things like home mortgages, car loans, student loans, child support, and tax debts, are reduced and packaged into a manageable monthly payment based upon your income. If you have a regular income, Chapter 13 bankruptcy could be your solution to keeping a roof over your family.
Can you commit to an affordable payment plan based on monthly income?
This repayment plan, if followed, can result in being able to pay the debts and keep the family home. The best of both worlds. It’s a big decision that requires humility, but the alternative of uprooting the family and moving is even more difficult. Especially when children are involved; consistency is necessary for children’s mental and emotional development.
The mere mention of the word “bankruptcy” makes many people uncomfortable. However, sometimes we have to take a step backward before we can move forward. Having some help with realigning our finances to manageably pay our debts and keep our family home, is sometimes necessary. When finances are out of control, Chapter 13 bankruptcy helps package debts into a manageable way that helps us take back control of our lives.
It is not necessary to procrastinate until the foreclosure notices begin to stack up. Be proactive and consult with an Alabama law firm that is experienced in bankruptcy cases. You are not alone, there may still be time to save the family home.