Foreclosure and Bankruptcy
Foreclosure and Bankruptcy…
For many, the thought of losing your home to foreclosure, would be a difficult and traumatic event. The important thing is YOU HAVE OPTIONS! You need an attorney to assist with analyzing those options, from both an emotional and an economic standpoint. Attorney Mart and Evan Swenson know the ins and outs of the foreclosure process and uses their expertise to get you the best result possible, all while making sure your financial goals have been met.
How Does Bankruptcy Affect a Foreclosure Proceeding….
Once a bankruptcy is filed, an automatic stay takes place, which limits all creditors from acting on any further collection efforts. This includes the foreclosure on your home. The stay that’s implemented allows you time to assess your financial options. The reality in today’s world is many homes are underwater and it simply does not make economic sense to keep them. Consulting with the Swenson Law Group involves helping you determine what options are available to you and ultimately which option will achieve your goal.
How Does a Chapter 13 Bankruptcy Work Relative to Foreclosure?
Falling behind on your mortgage payments is what initiates a foreclosure against your home. For many, other debt obligations force the home owner to forego their mortgage payment. Becoming current on past mortgage payments may not be a realistic approach. A Chapter 13 bankruptcy allows for you to incorporate your past due mortgage payments, spread out over a 3 to 5 year payment plan, which then prevents further foreclosure action by your mortgage holder. The mortgage holder is required to accept regular mortgage payments outside of the Chapter 13 plan. This approach is the most common reason Chapter 13 bankruptcies are filed.
Is Walking Away My Best Option?
Unfortunately, it is a common occurrence for homeowners to owe much more than what their homes are worth. To determine whether it makes sense to walk away involves analyzing several factors. The most important part, if you choose to walk away, is making sure you are not liable for any potential deficiency (a balance remaining after the foreclosure sale). This debt can sometimes be exceptionally large. Therefore it is important to have an experienced attorney make certain you are making the correct decisions.
KNOW YOUR OPTIONS…KNOW YOUR RIGHTS!
The Swenson Law Group will help you properly handle your foreclosure issues. Attorneys Mart and Evan Swenson have over 35 years of experience helping clients in Western Wisconsin, which matters when weighing your options. It is the Swenson Law Group’s goal to get you the best outcome possible.
The links below provide additional information regarding bankruptcy:
- Consumer Information – Debt Collection: Federal Trade Commission
- Wisconsin Consumer Act – Wisconsin Department of Financial Institutions
- Avoiding Foreclosure – HUD
- Credit Counseling and Debtor Education Information – U.S. Trustee Program
- Student Loan Forgiveness – StudentAid.ed.gov
- Consumer Financial Protection Bureau
- Wisconsin’s New Automobile Repossession Law – State Bar of Wisconsin
- Repossession and Your Rights – Avvo.com
- Federal Poverty Guidelines – Wisconsin Department of Health Services
- Facing Foreclosure? – Federal Trade Commission