Do you stay up at night worrying about missed mortgage payments? Many Michigan homeowners face the same fear of losing their homes to foreclosure. With rising costs, bills and financial stress, keeping up with mortgage payments gets harder each month.
Fortunately, Chapter 13 bankruptcy can serve as a solution to help protect your home.
Protection from foreclosure actions
Filing for Chapter 13 automatically pauses all foreclosure proceedings. This immediate legal protection prevents lenders from taking your home while you develop a workable repayment strategy. You’ll have time to reorganize your finances without the constant threat of foreclosure.
Create an affordable payment schedule
Chapter 13 lets you make a structured repayment plan that fits your budget. You can spread out overdue mortgage payments over several years. This gives you more flexibility and makes it easier to manage your debt.
Stop late fees and interest charges
Filing for Chapter 13 bankruptcy can stop extra late fees and interest charges on your overdue mortgage payments. This break from growing penalties makes it easier to catch up on what you owe. You can focus your repayment plan on the mortgage debt without worrying about the extra charges.
Shield yourself from collection pressure
Chapter 13 immediately stops collection activities and protects you from creditor actions. It can:
- Stop creditor calls and letters
- Prevent property seizures
- Block wage garnishments
With these protections, you can focus on following your repayment plan without worries.
Cure mortgage defaults over time
Filing for Chapter 13 allows you to fix mortgage defaults gradually. Instead of demanding immediate full payment, you can resolve overdue amounts over three to five years. This can help you regain good standing with your mortgage lender while keeping your home.
Take control of your home and financial future
When you’re juggling credit card bills and other debt on top of mortgage payments, it’s easy to lose hope and fear losing your home to foreclosure. However, filing for Chapter 13 bankruptcy offers a lifeline.
Chapter 13’s structured repayment plan helps you systematically address your mortgage and other debts. Working with an experienced Michigan bankruptcy attorney may further help clear your path toward a fresh start.
