For most Americans, their home is the most expensive and most important asset they possess. It is no wonder that many Americans are turning to bankruptcy to save their home from foreclosure. As soon as bankruptcy is filed, all collection attempts must immediately cease. This includes foreclosure actions and attempts to collect on mortgage loan default. Additionally, unsecured debt the homeowner holds will be discharged, freeing up income to catch up on a home loan and get back in the black.
More and more people are turning to a Fort Worth bankruptcy attorney to help them avoid foreclosure. By filing for bankruptcy, you can save your home and get back on track financially. Whether you are dangerously close to getting your first notice or have already started receiving them, a Fort Worth bankruptcy attorney can help you. By assessing your current financial circumstances and future income, a bankruptcy attorney can decide whether filing for bankruptcy can stave off the foreclosure process.
While many people file for Chapter 7 bankruptcy to help them erase debts, this might also force them to sell off certain assets to do so. By filing for Chapter 13 bankruptcy instead, you can restructure your debts and keep your assets, such as your home. If you are forced to go through foreclosure proceedings, you may be left without a home and still owe a balance to the mortgage company. A foreclosure may result in the mortgage company issuing a 1099 report of miscellaneous income to the IRS, requiring you to report forgiveness of debt as income. If your home sells at foreclosure for less than its loan payoff, the mortgage holder may seek a deficiency judgment against you. A judgment can stay on record for 10 years and can be renewed for another 10 years. I can help you stop these consequences from happening, even if you decide not to keep your house.
For a free consultation, contact me, Fort Worth bankruptcy attorney Michael P. O'Donnell, via phone at 817-732-7590 or 972-819-3861. I can also be reached by E-mail to discuss what legal steps you should take to avoid foreclosure altogether.