Debt can pile up quickly for people in Miami. What starts out as a manageable debt can quickly explode if something goes wrong. There are times when people may need to take out additional debt simply to keep up with their current debt. They may begin to fall behind on important payments and their homes may even go into foreclosure.
The thought of losing a home in which people may have raised their families and where their life revolves can be very scary. People in this position may have options not only to rid themselves of their debt but also keep their homes. People can do this through bankruptcy.
There are different types of bankruptcy and many people may think that they will need to liquidate their assets and lose their homes during the process. However, people going through bankruptcy may not automatically lose their homes. People may be eligible for Chapter 13 bankruptcy instead of using Chapter 7 bankruptcy.
Using Chapter 13 bankruptcy to stop foreclosure
Chapter 13 bankruptcy is unique because through the process, people still make payments toward their debts. All of their debts are consolidated and they are given a payment plan. The debts included in the payment plan can include mortgage payments. This means that Chapter 13 bankruptcy can stop the foreclosure process. As long as people complete the repayment plan by making their monthly payments, they will be able to keep their home and other personal property on which they had loans.
Chapter 13 bankruptcy may not be an option for everybody in Florida. As people are required to make monthly payments still, they need to have an income in order to make the payments. For those people who are able to use it, it can be a way for them to not only rid themselves of their debt but also allow them to keep their homes. The bankruptcy process can be a stressful time for people and being able to be in your own home during it can make it that much easier.