Cedar Rapids Filing for Bankruptcy Lawyer
Home ownership is an incredibly important part of many American’s lives. Unfortunately, this privilege has suffered seriously in recent years by the rash of sub-prime lending and subsequent housing market crash. Foreclosures are now extremely common, with banks seizing properties from borrowers who are no longer able to meet their mortgage payments. For many people who have fallen behind on their mortgages, their current income may be sufficient to pay off their debt dutifully, but the outstanding payments are threatening them with a foreclosure faster than they are able to get up to date on their payments.
Filing for Chapter 13 bankruptcy can offer you the solution you need to manage your debt without losing your home. With the assistance of a skilled Cedar Rapids home foreclosure lawyer from Hong Law, PLC, you may be able to successfully arrange your debts into a 3-5 year repayment plan which covers the full value of your mortgage, preventing the lender from foreclosing on your home. To learn more about how bankruptcy may be the solution you’re looking for, call us today at (319) 294-5853.
How Bankruptcy Can Save Your Home
Filing for Chapter 13 bankruptcy may be the optimal first step in regaining control of your debt situation in a way that allows you to retain ownership of your home. Once you have filed, the bankruptcy process can help stave off foreclosure in the following ways:
- An automatic stay will be placed on your debts, which prevents creditors from making collections activities. This includes foreclosing on your home and will protect you against foreclosure until your bankruptcy filing has been processed.
- Repayment is then planned out using a three to five year plan in which you continue paying your mortgage as usual and also pay a portion of your late unpaid payments each month over the length of the plan.
- If your first mortgage is secured by the entire value of the home, the Chapter 13 court may be able to reclassify a 2nd or 3rd mortgage as unsecured debt, causing it to receive last priority in repayment and sometimes allowing you to discharge the debt entirely.
With the advantages offered by these tools, Chapter 13 can help prevent a foreclosure and allow you to keep your home.
At Hong Law, PLC, our legal team is dedicated to helping debtors regain their financial independence through effective use of the bankruptcy system, and with the assistance of an experienced Cedar Rapids bankruptcy lawyer you may be able to prevent a foreclosure on your home by filing for Chapter 13 bankruptcy. For a free consultation to discuss the details of your case, call us today at (319) 294-5853.
Coralville, IA 52241
Phone: (319) 354-1804
Map to our Coralville Office