CMC Law – Your Atlanta Stop Foreclosure Attorneys
The threat of an impending foreclosure can be traumatic. Filing bankruptcy will stop foreclosure, regardless of which type of bankruptcy you file. However, the type of bankruptcy you enter will determine whether the foreclosure is stopped temporarily or permanently.
How to Stop Foreclosure in Atlanta
Filing a Chapter 13 bankruptcy can permanently stop a foreclosure. To qualify to stop an Atlanta foreclosure in a Chapter 13, you must have enough income to pay forthcoming mortgage payments, in addition to a bankruptcy payment. The bankruptcy payment will include mortgage arrears, homeowner association fees, car payments, and a portion of debt owed to unsecured creditors, such as credit card or medical bills. For example, if you are 6 months behind on your mortgage, you must have the income to pay for the regular mortgage payment going forward, plus the 6 months you are behind, spread out over a 60 month period.
We Can Stop Foreclosure on Your Home in Atlanta
Filing a Chapter 7 bankruptcy will stop foreclosure in Atlanta, but only temporarily. If your mortgage payments are behind and you file a Chapter 7, it is highly likely that you will ultimately lose the house unless you can pay back all the arrears before the Chapter 7 ends. Since Chapter 7 bankruptcy usually only lasts between 3 to 6 months, there is a very limited amount of time to pay back arrears. However, if your goal is to simply slow down the foreclosure process, rather than completely eliminate it, Chapter 7 will accomplish that goal.
Our Atlanta Stop Foreclosure Attorneys
A loan modifications can save your home from foreclosure. However, in our experience, loan modifications occur infrequently, and often provide little help even when granted. Many times, families are turned down for loan modifications because they lack the income needed to pay even a reduced mortgage. Filing bankruptcy can aid in obtaining modifications, since bankruptcy reduces the amount of money paid to other creditors. Also, eliminating a Second Mortgage in bankruptcy can have a similar effect, freeing up cash that can instead be applied to the First Mortgage.