Legal Counseling in Bankruptcy Protection and Foreclosures in Fort Lauderdale
If you are facing foreclosure, filing for Chapter 13 bankruptcy protection may potentially help you save your home. The Fort Lauderdale bankruptcy attorneys at Anidjar & Levine help individuals find solutions in the area of bankruptcy law. Our lawyers can explain how Chapter 13 can affect your current financial situation, including its impact on the foreclosure process. We offer personalized guidance and representation if you decide to file for bankruptcy.
Stopping Foreclosures in Florida
There are several advantages to filing for Chapter 13 bankruptcy instead of Chapter 7. One of these benefits is preventing foreclosure on your home.
When you have a secured debt, like a mortgage on a home, the lender can take back the property used as collateral for the debt. The lender can start the foreclosure process if you fall behind on your mortgage payments. Your home can be sold at auction or in a foreclosure sale to pay off the mortgage. In some cases, a lender will agree on a loan modification to avoid foreclosing on your home. However, if the lender does not agree, you still may be able to keep your home through Chapter 13.
Chapter 13 bankruptcy allows you to reorganize your debt so that you can pay certain creditors with your disposable income. Unlike Chapter 7, you can keep any asset you like in a Chapter 13 bankruptcy as long as you pay for it.
To stop foreclosure on your home through Chapter 13, you must stay current in your future mortgage payments and catch up on any delinquent mortgage payments over the term of your case. A key factor in saving your home is to develop an adequate repayment plan. A lawyer with substantial experience in the area of bankruptcy law can help you develop a repayment plan that suits your goals.
Chapter 13 Debt Repayment Plans
When you develop your debt repayment plan, it will include the amount that you are delinquent in your mortgage payments. You must pay this arrearage over the course of your repayment period in set installments, and you must continue to make your mortgage payments to avoid foreclosure.
Chapter 13 repayment plans last three or five years, so you must have enough income to continue making your mortgage payments and catch up on any missed payments. Before meeting with the creditors, you will have to submit proof of income, such as your paystubs or a copy of your tax returns for your last five years if you are self-employed. You will then have to begin making your proposed payments, along with your regular mortgage payments, within 30 days after your case is filed.
If you miss several payments after your petition is filed, your lender may proceed with foreclosing on your home. You would have to bring your mortgage payments up to date to avoid the foreclosure.
Lien Stripping for Second and Third Mortgages
If you have a second or third mortgage on your home, you still may be able to eliminate the debt. Lien stripping happens when a court orders a lender to remove its lien on a property, thereby converting a secured debt like a mortgage into an unsecured debt. You can lien-strip only if your home is “under water.” In other words, a court will lien-strip only if your first mortgage exceeds the value of your home. The second or third mortgage is treated as an unsecured debt, and any remaining debt will be discharged after you complete your repayment plan.
Counseling Hollywood Residents in Bankruptcy Matters
The bankruptcy lawyers at Anidjar & Levine are committed to providing capable and individualized representation in bankruptcy-related matters. Our attorneys can offer counseling if you are facing foreclosure and discuss how you can potentially stop the foreclosure of your home by filing for Chapter 13. We can answer questions specific to your case while guiding you throughout the bankruptcy process. We offer our services to clients throughout Miami and South Florida. Please call us at 800-747-3733 or complete our online form to set up a free consultation.