If you are dealing with the possibility of foreclosure, trying to figure out how to save your home can be stressful. While most homeowners look to find Foreclosure Dayton Ohio programs to help with past due balances, not many consider filing bankruptcy as an option for a fresh start. While Chapter 7 bankruptcy won’t permanently stop the foreclosure process, it can potentially help you in other ways including freeing up some money to pay on the mortgage, delaying the foreclosure process, and ensuring that there will be no tax penalties on a deficiency.
Automatic Stays
Once you file your petition with a Miami Valley Bankruptcy attorney this will prohibit most of your creditors from collecting against you. When this happens, an automatic stay is put into place which will also be required for your foreclosure. This will prevent the lender from proceeding with the foreclosure process for a short period of time. While the judge may decide to lift the stay, you still have a bit more time to secure funds for your outstanding balance due on the mortgage.
Discharging Debts and Applying it to Your Mortgage
Since filing chapter 7 bankruptcy means that your unsecured debt is canceled out or put onto a more affordable payment arrangement, the money that you were contributing to those bills can now be applied to get the overall costs on your mortgage down enough to come out of foreclosure status.
Potential Tax Advantages
The chapter 7 bankruptcy filing will cancel out the mortgage as well as other debts that had been secured by your home. When those debts are canceled, it can potentially create significant tax advantages if you do happen to lose your home in the foreclosure process.
Getting a notice for Foreclosure Dayton Ohio home does not mean that you have to pack your things and leave. There are thousands of people out there going through similar financial struggles who have been able to remain in their homes by simply consulting with a professional and filing for bankruptcy. Find out what options you have available to you by consulting with a legal professional in your area who is familiar with bankruptcy and foreclosure laws.
