Receiving a foreclosure notice can be a nightmarish and daunting experience. The consequences of a foreclosure include you losing your house.
Sometimes, even the most financially responsible individuals can find themselves in such a situation because of some unforeseen event or incident that may have struck them such as a medical emergency, an illness, an accident, or loss of job.
Creditors are usually faceless, heartless corporations that deal with such situations objectively and by protocol. You missed a few payments? They may a bit flexible for a month or two, but that’s about it.
If you did not keep up with every term and condition of the mortgage contract then the creditor can go ahead and file suit against you. They will initiate the foreclosure process.
So what is bank foreclosure? It is the legal process where the creditor repossesses a borrower’s home and then proceeds to sell it.
The money or income gathered from the sale is then used by the creditor to pay off all or a part of the outstanding debt that the borrower owes them. It is a pretty ruthless legal process which can leave you and your family without a roof over your head.
This has happened before, not just in the movies or some TV show. USAttorneys.com, this website, was built for strenuous times just like this though. We have a legal counselor just for you. Legal help is right around the digital corner.
So what can you do about foreclosure?
However, what most people miss out on is that even in such a seemingly hopeless situation, there is hope. You do have some effective legal options that you can utilize in order to avoid or stop the process of foreclosure and keep ownership of your house.
Filing for bankruptcy is one such option. There are several different types of bankruptcies which serve different purposes of course. The most common types are as follows:
- Chapter 7 bankruptcy
- Chapter 13 bankruptcy
- Chapter 11 bankruptcy
- Chapter 12 bankruptcy
Chapter 11 and Chapter 12 bankruptcies are meant for small companies that have hit a rough spot financially and for fishermen and farmers that have been overburdened by insurmountable loans respectively.
However, Chapter 7 and Chapter 13 bankruptcies are more relevant and should be of more interest to you unless you fall under one of the aforementioned categories.
Chapter 7 bankruptcy and Chapter 13 bankruptcy – the main differences
Chapter 7 bankruptcy is also known as a fresh start bankruptcy. Basically, a fresh start is what it offers you. Low wage earners or no income earners who have mortgages and debts that they simply have no means of paying off are usually the ideal candidates for Chapter 7 bankruptcy.
A Chapter 7 bankruptcy can help discard debts such as credit card debts, prior tax debts, personal loans, etc. completely so that you will not have to pay them back at all.
On the other hand, Chapter 13 bankruptcy is meant for those who do have a steady source of income. Using Chapter 13, you can negotiate with your creditor and come up with a payback scheme which is more sustainable and bearable by you.
One step away
The bottom line is you ought to seek immediate help from a seasoned foreclosure lawyer in Indiana. And the salient news is you needn’t look further than USAttorneys.com. We have designed the most accurate interactive map and local lawyers’ directory search, which you can use to gain access to the contact details of the leading legal experts in your county. Make sure to make use of these tools and call them right away to request for a free initial consultation.
If you have any questions don’t hesitate to chat with one of our representatives via the live chat facility or fill out the quick contact form and we will help you obtain legal help when we call you back, perhaps that same day.
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