The looming “fiscal cliff” means more financial worries for
families in San Diego and throughout the nation. According to The Wall
Street Journal, as many as 90 percent of American
households will take a “financial blow” next year from a combination of the tax hikes, spending cuts, and rising unemployment
that are expected to come. Families that are already struggling to make
their mortgage payments every month could be forced into foreclosure.
If any of the following is already true in your situation, bankruptcy may
be an option to save your home:
Filing bankruptcy stops foreclosure proceedings, stops credit card and
bill collections, stops debt lawsuits, and gives you a chance to restructure
your finances. If you have income and could afford your mortgage payments
if the rest of your debts were eliminated or reduced, then bankruptcy
would probably be a good option for you.
Chapter 7 can wipe out your unsecured debt and free up enough cash for the mortgage payment.
Chapter 13 also stops foreclosure and creditor harassment. Under Chapter 13, you
get the advantage of keeping your home and reorganizing your debt, often
with reduced monthly payments, giving you time to repair your finances
over a three- to five-year period.
However, if you’re unemployed or underemployed or simply don’t
have enough income to make your mortgage payments, then you could still
lose your home. Bankruptcy could still help you eliminate other debt,
though, which could give you the ability to save up for a home in the future.
Wherever you fall on the financial spectrum, be very careful about your
finances in light of the “fiscal cliff” that is set to hit.
If you’re already struggling financially, it would benefit you to
speak with a bankruptcy attorney now rather than later so that you can
take the appropriate pre-bankruptcy steps to try to save your home.
To learn if
bankruptcy might be right for you, contact attorney Kerry Denton at Denton Law Group.
Call (619) 458-3739 today for a free consultation.