Avoid Foreclosure Louisville Kentucky Bankruptcy
Every year 1-2 percent of the population files bankruptcy. Homeowners often file a Chapter 7 or 13 bankruptcy to avoid foreclosure. Unfortunately just as there are scams to take your home there are attorneys which will attempt to put you into the bankruptcy that will make them the most money. Make sure that the Bankruptcy Chapter that you file obtains your goals.
While a Chapter 13 allows you to strip away a second mortgage it also allows you to catch up payments. A Chapter 7 only temporarily stops a foreclosure often allowing you to negotiate a mortgage modification or workout agreement. If the Chapter 7 does not work you may still often be able to file a Chapter 13 immediately after the Chapter 7 to force the payments upon the mortgage company. Although you can obtain only one “discharge” or permanent forgiveness of debt you can file a Chapter 7 and immediately file a Chapter 13 right after the Chapter 7. You simply dont get a second discharge. But why would you need a second one a few months later?
To avoid foreclosure you need to know which bankruptcy to file. Sometimes you may actually have to file both a Chapter 7 and a Chapter 13 to avoid a foreclosure. That is why we wrote our bankruptcy manual to help you to avoid foreclosure. A mortgage company may refuse workouts or payments but if you can afford to catch up the payments within 5 years you can file a Chapter 13 and force a stop to your foreclosure.
If you are substantially in debt to unsecured lenders but you have not become behind in your payments to the mortgage company yet you may need to file a Chapter 7 to avoid going into foreclosure. Or you may only need to file a Chapter 7 to allow you to afford your home mortgage. That is why it is important to call an attorney as soon as you receive notice of foreclosure or start becoming delinquent.
If your second mortgage has no equity you may even be able to completely strip away and eliminate a second mortgage by filing a Chapter 13. Many people file the Chapter 13 and then are able to qualify within a year for refinancing their home at a prime interest rate. Presently this is at less than 5 per cent in August 2008 If you want to avoid a foreclosure in Kentucky see us for help. Our websites explain all of the methods that you can use to avoid foreclosure.
Nick C. Thompson Louisville Kentucky Foreclosure Attorney
