When someone faces foreclosure on their home, it can be difficult to know how to proceed. There are ways to stop foreclosures, such as Chapter 7 bankruptcy and debt settlement. Below are a few tips for homeowners to keep in mind when considering Chapter 7 as a means of stopping foreclosure.
Prepare Documents
Before the homeowner does anything else, they should ask bankruptcy Attorneys in Topeka KS for help in assembling the necessary documents. Bankruptcy petitions require supporting evidence including a copy of the mortgage agreement and any related amendments, and it’s important to have these documents ready when it’s time to file.
Get Copies of Current Statements
If a homeowner has revolving credit accounts, they need copies of current statements. When filing for bankruptcy protection, all debts are considered, not just the mortgage. Filers should gather current bank statements, pay stubs, and recent tax returns. This step isn’t just about documenting debt; it’s about proving one’s earnings and assets as well.
Get and File the Petition
A lawyer can help a client prepare bankruptcy forms properly and completely before filing them with the bankruptcy court. During this part of the process, bankruptcy Attorneys in Topeka KS can complete the right paperwork and file the bankruptcy petition.
Send a Copy of the Stay to the Lender
It’s important for the client to promptly send the stay order to the mortgage lender’s legal team. Lenders are interested in these stay orders, as they’re a way for the bankruptcy court to order them to cut the foreclosure process short.
Sign the Reaffirmation Agreement
It’s wise to form a reaffirmation agreement with the mortgage lender, particularly if the foreclosure is pending. Through such an agreement, a borrower can keep his or her home and stop foreclosure. However, they’ll have to keep on making mortgage payments as outlined in the agreement terms.
While the idea of foreclosure can be a frightening one, it’s possible to stop the process by filing for bankruptcy protection. By following these tips, clients can put a stop to foreclosure and stay in their homes. Visit Joewlaw.com to find out how a bankruptcy lawyer can help a homeowner in need.
