Foreclosures Book

BANKRUPTCY Depending on the severity of your financial problems, you might want to consider filing for Chapter 13 bankruptcy. This is an extreme measure, which ordinarily should be considered only after you have exhausted all other possibilities. Chapter 13 provisions provide you with an opportunity to reorganize and work with your creditors to develop repayment options. According to the U.S. Courts website at uscourts.gov, “A particular advantage of Chapter 13 is that it provides individual debtors with an opportunity to save their homes from foreclosure by allowing them to ‘catch up’ past-due payments through a payment plan.” Relief or partial relief from your other debts could put you in a better financial position to continue making mortgage payments. However, before pursuing bankruptcy, consult an attorney, who can assist you with filing and explain the ramifications on your finances and credit. This is in contrast with a Chapter 7 bankruptcy, which can briefly delay your creditors’ collection efforts but ultimately is not aimed at helping you keep your home. As with a Chapter 13 bankruptcy, engage an attorney before attempting this step. There are serious and long-lasting implications for your personal credit and ability to buy a home in the future. SPECIAL PROGRAMS The government websites USA.gov/foreclosure and hud.gov, list a number of special resources for you when you’re facing foreclosure on your home. One such resource is the MHA (Making Home Affordable) program, which provides free