Filing Bankruptcy May Have Advantages for Homeowners

In difficult financial times, many families find themselves robbing Peter to pay Paul. They may pay a credit card bill or utility bill, but then find themselves falling further behind on their monthly mortgage payment. Some lenders, rather than working with people who are behind on their house payments, are quick to file a foreclosure action.

I am William Strawcutter. In my bankruptcy practice, I work to help individuals save their homes. If you are facing home foreclosure in Florida, I offer a free initial consultation from my Orlando office or at any of my several convenient meeting locations in Winter Park, Lake Mary and Sand Lake areas.

Will Filing Bankruptcy Stop a Home Foreclosure?

Upon filing either Chapter 7 or Chapter 13 bankruptcy, an automatic stay will enter. The automatic stay immediately stops a home foreclosure and all other debt collection activities. However, when you file Chapter 7 bankruptcy, the automatic stay is only temporary. You may still lose your home if you are unable bring your payments current or otherwise come to an agreement with your mortgagee.

Giving You the Time You Need to Organize Your Affairs

If you are significantly behind in your mortgage payments, filing Chapter 13 bankruptcy allows you to put your arrearage into a payment plan and pay it over a three to five-year period. You may be able to pay back less than the full amount of second and third mortgages in certain circumstances:

  • If your home is worth less than you paid for it
  • If you have unsecured second or third mortgages

Filing bankruptcy gives you time to reorganize your financial affairs. By allowing you to discharge or reduce unsecured debts, bankruptcy may allow you to maintain payments for the property you want to keep.

Free Consultation With a Bankruptcy Attorney

To discuss ways to save your home with an experienced and compassionate bankruptcy lawyer with an experienced and compassionate bankruptcy lawyer, call (407) 268-6844 or fill out the contact form on this Web site to schedule your free initial consultation. My Orlando office is conveniently located in Winter Park and accessible from I-4; I also have meeting locations in Lake Mary and Sand Lake areas to fit your needs.