If you have recently found yourself in a serious rough patch, there may be several different areas of your life affected – including your ability to manage day-to-day expenses. One of the most devastating ramifications of financial instability is the looming threat of foreclosure, however, as this is one of the most common side-effects of unmanageable debt.
Fortunately, there are a number of ways in which you can get back on the road to recovery before matters get any worse. You may even be able to stop the foreclosure process altogether if you take the right steps quickly. With the help of a Chicago bankruptcy lawyer from our firm, you can figure out a financial solution that is best suited for the unique circumstances that you are up against – even if you are facing the imminent threat of foreclosure.
One of the most effective ways to halt foreclosure is to initiate the bankruptcy process. As soon as you have filled out all of the necessary paperwork and submitted your petition to the court, they will move quickly to order an automatic stay. This will essentially act as a "cease and desist" order for any creditors that have attempted to collect on overdue debt, as they will be strictly prohibited from continuing their efforts until the bankruptcy process has been concluded.
The automatic stay is applicable to all impending foreclosures, so you would be able to stay in your home for the time being. It does not necessarily mean that their efforts will not be continued thereafter, however, as an automatic stay will typically only give you a few months to develop a plan and get your finances in order.
Typically, filing for Chapter 7 will just delay the foreclosure process – as the debtor would only be afforded a few months to develop a plan under the protection of an automatic stay. If you are looking to completely stop the foreclosure process, however, you may be interested in filing for Chapter 13. This is a more gradual way to alleviate debt, as it would allow you to reorganize your finances and develop a manageable payment plan that would span over a period of 3-5 years.
If you have at least enough income to meet your current mortgage payments – regardless of how far behind you have fallen – while you repay your debt under the new structure, you should be able to avoid foreclosure and keep your home when the process has finally been concluded.
If you have been faced with the threat of foreclosure in Illinois, you should not hesitate to consult with a Chicago bankruptcy attorney as soon as possible. Moving quickly is critical, as you may only have a small window of time to resolve your debt-related issues and successfully fight the foreclosure of your home.
For this reason, we encourage you to get in touch with the firm today. Taking the first step is often the hardest part, but all you have to do it pick up the phone and give us a call to get started. Regardless of the way in which you choose to contact the firm, just make sure that you do so before it is too late.
Tell us about your case online by submitting a free bankruptcy evaluation. We encourage you to call us today!