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.