In Florida, filing for bankruptcy can be used as a way to stop foreclosure. Filing for bankruptcy can provide debtors with the opportunity to get back on their feet while they create a repayment plan that is within their means. Once the debtor files for bankruptcy and the court approves it, an automatic stay will be issued which will prevent creditors from continuing with the foreclosure process. This will give the debtor time to catch up on their mortgage payments.
If you choose to file for bankruptcy as a way of stopping foreclosure in Florida, it is important that you select the right type of bankruptcy for your situation. Chapter 7 Bankruptcy and Chapter 13 Bankruptcy are both available options for Florida residents.
Chapter 7 Bankruptcy is designed to help individuals clear all of their unsecured debts without the need to repay them. The debtor can keep their home and car as long as they keep up with the monthly payments. The downside of this type of bankruptcy is that it does not stop foreclosure proceedings, so if you are already behind on your mortgage payments when you file, it will still be possible for the foreclosure process to continue.
Chapter 13 Bankruptcy is more suitable for individuals who are facing foreclosure and want to keep their homes. This type of bankruptcy allows the debtor to create a repayment plan that must be approved by the court. Once the payment plan is approved, the debtor can start making payments to their creditors as agreed and continue to make their mortgage payments. The automatic stay will also be in effect during this period, preventing creditors from continuing with the foreclosure process.
If you are considering filing for bankruptcy as a way of stopping foreclosure in Florida, it is important that you seek legal advice from a qualified attorney. An experienced lawyer can help you determine which type of bankruptcy is right for your situation, and they can also provide guidance on the best course of action to take.
