Chapter 13 Bankruptcy Foreclosure in Pensacola

Consumers should file for bankruptcy protection in order to avoid residential mortgage foreclosure. Pensacola has seen a rise in residential mortgage foreclosures in recent years. Residents are finding relief through Chapter 13 bankruptcy foreclosure in Pensacola.

Pensacola business foreclosure Chapter 13 bankruptcy remains one of the best and most effective ways for consumers to resolve mortgage foreclosure problems. You can file a bankruptcy proceeding up until the day you sell the property. This will immediately stop foreclosure proceedings by taking jurisdiction from the State Court and placing it in U.S. Bankruptcy Court. This allows for the foreclosure to be transferred to a court that is able to consider the homeowner’s financial situation.

We can help homeowners who cannot manage their credit cards, car payments, home equity, medical debts, regular mortgage payments, and credit card debts by restructuring their debt. This will help them avoid losing their home to foreclosure. If a homeowner can prove that they are financially able to pay their mortgage in the next five-year period, catch up on arrearages for the 5-year period and make fair payments, the Chapter 13 bankruptcy can help save their home.

Why File for Chapter 13 Bankruptcy

After their efforts to modify their mortgage failed, many people ended up filing Chapter 13 bankruptcy foreclosure in Pensacola. It is important to remember that bankruptcy does NOT end a consumer’s ability to negotiate a modification of their mortgage. Consumers can request that their lender is covered to review the mortgage to modify it under the HAMP program. Most homeowners in financial distress are still not able to obtain mortgage modifications, despite their needs. My observations are that most homeowners who request a modification take several months to send the paperwork to the mortgage servicer. Meanwhile, their mortgage payments keep falling behind. They were eventually denied any modification. Ironically, many people find themselves in foreclosure after being told to stop paying their mortgage payments to be eligible to modify.

Chapter 13 bankruptcy foreclosure in Pensacola is an option for homeowners facing foreclosure. The arrearage will increase if a foreclosure case is not closed and no payment is made on the mortgage debt. Arrearage can include missed payments, late fees, interest, and attorney costs. If the amount is excessive, it may not be possible to keep the mortgage current within the five-year limit set by Chapter 13 bankruptcy.

Chapter 13 Should Be Considered Early in the Foreclosure Process

Homeowners can also use Chapter 13 bankruptcy to consolidate debts and get rid of second mortgages or other associated debts. This can be very beneficial if the property’s value is greater than its debt. To allow this, the second or third mortgage must not be secured. The second mortgage must be lower than the first. The second mortgage must be “unsecured” meaning that it cannot be used for the second mortgage’s secured debt. Known as “stripping” the second mortgage. This relief is only available in limited circumstances. It can, however, make a big difference to homeowners.

For homeowners who are facing foreclosure, a bankruptcy attorney may be able to help. Many bankruptcy lawyers offer free consultations. The costs and filing fees for bankruptcy proceedings are usually lower than those associated with foreclosure defense.

Contact Bruner Wright P.A.

Chapter 13 bankruptcy foreclosure in Pensacola is very complex and confusing. It’s crucial that you select highly skilled bankruptcy lawyers to guide you through your case. Bruner Wright P.A. has been serving the Florida Panhandle for many decades. These years of experience have created an exceptionally knowledgeable and professional law office! We have handled every type of bankruptcy case. Each bankruptcy case is different, so it is crucial to have a firm that is available and communicative. Bruner Wright believes attorneys must be open to communication. Our lawyers are always available to answer your questions about Chapter 13 bankruptcy foreclosure in Pensacola. Bruner Wright P.A. is the firm to choose. Instead, contact Bruner Wright P.A. today for more information about your possible bankruptcy.