Due to extreme financial difficulties, some homeowners in Cedar Rapids are at risk of losing their homes to foreclosure. However, homeowners who are in such situations may benefit from seeking Chapter 13 bankruptcy protection to possibly protect their homes. The protections granted with this kind of action include:
- Homeowners are prevented from being harassed by creditors immediately, and their home is protected from foreclosure until the bankruptcy procedure has been started
- A three to five year repayment plan is established
- In some situations, the court may discharge the entire debt of a homeowner who files for Chapter 13 bankruptcy by reclassifying a second or third mortgage as an unsecured debt
You can read more about how to best defend your house against foreclosure here.
If you are considering filing for Chapter 13 bankruptcy to prevent your home from being foreclosed on in the Cedar Rapids area, get in touch with the lawyers of Hong Law, PLC. Call us today at (319) 294-5853 to find out how we may be able to help.
When filing for Chapter 7 or Chapter 13 bankruptcy in Iowa, a person may be able to discharge, or get rid of, certain debts; however, there are also certain debts that cannot be discharged.
A person who files for bankruptcy is responsible for paying back debts that can’t be discharged. Such debts include those dedicated to family support, like child support and alimony obligations. Debts from personal injury or death caused by driving under the influence must also be paid, in addition to fines and penalties for violating the law, tax debts, and any other debts that a person forgot to list in their bankruptcy papers.
Discharging debts is a critical aspect of filing for bankruptcy in many cases. As such, it is extremely beneficial to understand what kind of debts you have that may be discharged. To better understand this facet of bankruptcy and discuss your debt options, call the lawyers of Hong Law, PLC, at (319) 632-1400.
Coralville, IA 52241
Phone: (319) 354-1804
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