If you are in Georgia and facing foreclosure, it is important to understand that time is of the essence when it comes to saving your home. Fortunately, there are options available to you. In fact, what most Georgia homeowners do not realize is that bankruptcy can not only help them stop the bank from taking their home, but in many instances, they will be able to pay less on their home than they did before.
An Overview of Foreclosure
Foreclosure is a legal process where a lender tries to recover the amount owed on a loan that has not been paid back by taking ownership of the mortgaged property and selling it. The borrower may default on the loan by missing a certain number of monthly payments or failing to meet other terms specified in the mortgage document.
For instance, in Georgia, the state allows for non-judicial foreclosure. This means that lenders do not have to go to court to foreclose on a home. Rather, the banks can foreclose on the house through the “power of sale” process.
As a result, if you miss your first payment, Georgia laws allow the creditor to notify you of its intent to foreclose. Once you receive this notice, you will only have 30 days to pay off the entire loan. If you cannot pay it in full, your house will be up for public sale.
What Is Chapter 13 Bankruptcy?
Also known as a repayment plan, Chapter 13 bankruptcy allows individuals to develop a payment plan that, once approved by the court, can help them repay all or part of their debts. This plan also allows individuals to pay off their debts while protecting them from foreclosure or other types of legal action.
How Can Chapter 13 Bankruptcy Help You Save Your Home in Georgia?
If you are struggling to avoid foreclosure in Georgia, Chapter 13 bankruptcy laws may be an option to help you get through this challenging time. Although you will still be required to pay your mortgage, filing for Chapter 13 can help eliminate most of your other debts, making it easier to manage your home loan payments.
Once the bankruptcy petition is filed, the court will issue an automatic stay that commands creditors to cease all collection efforts immediately. This includes prohibiting lenders from foreclosing on your home, even if the process is already underway.
Filing for Chapter 13 bankruptcy basically provides individuals with a grace period to catch up on payments and maintain protection as long as they continue making their mortgage payments and Chapter 13 plan payments.
For More Information Regarding Foreclosure and Bankruptcy, Contact Duncan & Brow, Attorneys at Law, LLLP, Today
If you are at risk of foreclosure in Georgia, it is important to speak with a knowledgeable Georgia bankruptcy lawyer who can evaluate your situation and go over the options you have. Contact Duncan & Brow, Attorneys at Law, LLLP, today to discuss your situation and develop a plan that works for you.