For the second year in a row, New Jersey had the highest rate of foreclosures in the United States last year. According to a report published at nj.com, New Jersey’s average foreclosure rate was 1.86 percent in 2016, while the national rate was .70 percent, a 10-year low.
Fortunately for homeowners who have fallen behind on their mortgage payments, foreclosure is not always inevitable. In some cases, filing for bankruptcy may be able to stop foreclosure proceedings and allow a homeowner to catch up on his or her payments.
How Chapter 13 Can Help Stop Foreclosure
There are various types of bankruptcy available to consumers who are in debt. When it comes to stopping a foreclosure, Chapter 13 is typically the best option. In this type of bankruptcy, your debts are reorganized and you enter into a court-approved payment plan that you pay directly to a bankruptcy trustee who then distributes money to your creditors. Chapter 13 payment plans last for three to five years.
When it comes to past-due mortgage payments, Chapter 13 takes the amount in arrears and allows you to pay it back over the course of the plan. Importantly, in order to stop an impending foreclosure through Chapter 13, you need to be able to afford your mortgage payment at the same time as you are making regular payments on your Chapter 13 plan. As a result, Chapter 13 bankruptcy is typically most appropriate for homeowners who make regular income.
Do You Need an Attorney to File for Chapter 13 Bankruptcy?
If you are having trouble making your mortgage payment, it is likely that you are having financial problems. As a result, you probably want to save money at every opportunity, and retaining an attorney may seem like an unnecessary expense. It is important to understand that filing for any type of bankruptcy is a complicated process and any errors you make in the process could result in significant delays and even of the denial of your bankruptcy petition. For this reason, it is strongly recommended to file for bankruptcy with the assistance of an experienced attorney.
Call 201-498-9768 today for more information.
If you are having trouble keeping up with your mortgage payments and in danger of losing your home, contact Bergen County bankruptcy attorney John L. Schettino today. To schedule a free consultation, call our office today at 201-498-9769 or contact us online.