Levittown, PA Mortgage Foreclosure Lawyer

If you are facing a possible foreclosure on your home, a lawyer can help you figure out the best way to prevent foreclosure so you can keep your house. One possible method is to file for bankruptcy.

Homeowners might face foreclosure when they miss too many mortgage payments. The creditor of the homeowner’s mortgage, often a bank or other financial institution, may foreclose on the house, take possession of the property, and sell it to pay for their losses. You might have several legal options to avoid foreclosure, and one of them might be filing for bankruptcy. Depending on how you file for bankruptcy, you might have time to get your finances in order, repay outstanding mortgage bills, and catch up on payments to creditors. By doing so, you might avoid foreclosure. Depending on how your case turns out, some of your debts might be discharged by the court, you would no longer be liable to repay them, and creditors could not hassle you for payment.

Call our mortgage foreclosure lawyers today at (215) 701-6519 to schedule a free case review at Young, Marr, Mallis & Associates.

When and Why Mortgage Foreclosure Might Happen in Levittown, PA

Foreclosure may occur when a homeowner misses too many mortgage payments, and the creditors on the mortgage essentially reclaim the property to sell. Generally, creditors can only initiate foreclosure on a property if you have missed several months of payments. Being behind in payments by only a month or two is troubling but should not lead to foreclosure.

The purpose of a foreclosure is to allow creditors to sell the property in question and use the proceeds of that sale to recoup their losses. Foreclosed homes are often sold at auction, and many people scramble to buy them because they tend to be cheaper. In many cases, there is no money left over for homeowners, and they are left with nothing.

If your mortgage is quite high and the value of your home has decreased since you purchased it, you might be left with remaining debt. It is not uncommon for homeowners to lose their homes to foreclosure, and then the sale of their homes does not cover all their debt.

Dealing with foreclosure is certainly stressful, but our mortgage foreclosure lawyers can help you file for bankruptcy and potentially avoid foreclosure. Contrary to what people think, bankruptcy does not always mean you lose everything. It can be a fresh start to help you get out of debt.

How to Defend Yourself Against a Mortgage Foreclosure in Levittown, PA

Understandably, most people want to avoid filing for bankruptcy. However, when faced with foreclosure, filing for bankruptcy might help you keep your home and other assets or properties. You can file for bankruptcy in several ways, and choosing the right bankruptcy chapter for your case is crucial.

Individuals often file for bankruptcy under Chapters 7 or 13. Businesses filing for bankruptcy may file under different chapters. Chapter 7 bankruptcy concentrates on liquidating your assets and using proceeds from selling your property to repay debts. While Chapter 7 bankruptcy may be completed relatively quickly, it often costs people their homes and assets and might not be best for someone facing foreclosure.

Alternatively, many individuals file for Chapter 13 bankruptcy because it allows them to reorganize their finances rather than liquidate assets. As such, many people who successfully navigate Chapter 13 bankruptcy come out the other side with less debt and their homes still in their possession.

What Happens When You File for Bankruptcy in Mortgage Foreclosure Cases in Levittown, PA?

Bankruptcy may be a great way to stop foreclosure proceedings and give you time to get your finances and assets in order. Generally, after a person and their lawyer file for bankruptcy, the court orders a stay of the foreclosure. This stay effectively puts the foreclosure on pause for a certain period of time, often 30 days or possibly longer.

If you file for Chapter 13, you and our mortgage foreclosure attorneys will come up with a payment plan for the court and your creditors to review and approve. If approved, creditors cannot foreclose on your home for the duration of your payment plan, often several years, unless you fall behind on mortgage payments and arrears.

By the end of your payment plan, you should hopefully be caught up on your mortgage. Additionally, other debts might be discharged or paid off, allowing you to more easily afford your mortgage.

When Debts Might be Discharged After You File for Bankruptcy in a Mortgage Foreclosure Case in Levittown, PA

As mentioned briefly before, certain debts, often unsecured debts, might be discharged after you file for bankruptcy. A discharge is a court order that states you are no longer legally obligated or liable for repaying a debt, and the creditors may not contact you for payment. Generally, mortgages are not subject to discharge, but other debts might be. If you can get enough other debts discharged, it should be easier for you to focus on your mortgage and keep your home.

Chapter 13 discharge only occurs after you have finished your payment plan. Again, payment pans under Chapter 13 often last for about 3 to 5 years, possibly longer. While discharging your debts is possible, you should not expect anything to be discharged for some time. Often, payment plans take into consideration the possibility of debts being discharged, and you might only have to plan to repay a certain amount of money before a debt is discharged.

Commonly discharged debts include credit cards, medical bills, and various unsecured loans. Debts that cannot be discharged include alimony, child support, restitution payments, and debts incurred through fraud or misrepresentation. Depending on your debt situation, many of your debts might be eligible for discharge through bankruptcy.

Call Our Mortgage Foreclosure Lawyers About Your Case

Call our foreclosure defense lawyers at (215) 701-6519 to schedule a free review of your financial situation at Young, Marr, Mallis & Associates.