Could filing for bankruptcy allow you to keep your Home?

Residents of the state of Florida are likely well aware of the role the state has played in the nation’s foreclosure crisis. As the real estate market has improved throughout the country, the state of Florida has seen improvement as well. This is illustrated, at least in part, by the reduction in foreclosures the state is experiencing. Over the course of the last two years, the number of active foreclosures that have occurred in the state has dramatically fallen from 550,000 to 277,000.

Despite the decrease in the number of foreclosures occurring in the state of Florida, the number is still significant. It is high enough that Florida ranks first in the nation when it comes to foreclosures. According to CoreLogic, the number of foreclosures that were completed in the 12 month period ending in January 2014 was twice as many as the next highest state.

It is fair to say that few residents of the state of Florida want to lose their homes to foreclosure. In most cases this situation arises as a result of financial distress the owner is experiencing. Those who are facing this situation may not realize that they may have options that could enable them to keep their homes. One of those options is to file for bankruptcy. The first step is to find a lawyer’s help filing for bankruptcy. An experienced lawyer can help with the procedures and explain legal complications.

A bankruptcy filing with lawyers help for chapter 13 bankruptcy immediately applies an automatic stay to any pending foreclosure actions. While the filing places a hold on that proceeding, the bankruptcy itself can provide a more long-term solution for keeping one’s home. For example, as a part of a Chapter 13 proceeding, the amount owed on a mortgage could be incorporated into a repayment plan. In this situation, at the close of the three to five year repayment period, in addition to being back on track financially, a filer could still have his or her home. It is likely that there are multiple residents of Florida who would be pleased with this outcome.You can check out expert commercial builders from Konnect Building Solutions here, for the best home addition.

Whether keeping one’s home is a possibility depends on a person’s specific circumstances. Because bankruptcy laws can be confusing and the average person filing for bankruptcy under Chapter 13 does not understand how to craft a repayment plan, most find it beneficial to work with a lawyer who handles such matters.

Source: Herald-Tribune, “Florida staying atop foreclosure ranking,” John Hielscher, Feb. 27, 2014