Are you struggling to make mortgage payments and facing the possibility of losing your home in Philadelphia? You’re not alone. Many homeowners in Philadelphia face foreclosure due to financial difficulties, job losses, or unexpected medical bills. Fortunately, filing for bankruptcy can help stop the foreclosure process and give you a fresh start. In this article, we’ll discuss how to stop a home foreclosure using bankruptcy in Philadelphia, and answer some common questions about the process.
Foreclosure can be a scary prospect for any homeowner. It can be a long and emotionally draining process that can leave you feeling helpless. But there is hope. Filing for bankruptcy can help stop the foreclosure process and save your home. If you’re considering filing for bankruptcy, you’re not alone. Millions of Americans file for bankruptcy every year to get a fresh start. Bankruptcy is a legal process that can help you eliminate or reorganize your debts and stop foreclosure proceedings.
How to Stop a Home Foreclosure Using Bankruptcy in Philadelphia
If you’re facing foreclosure in Philadelphia, filing for bankruptcy can help you stop the process and give you time to catch up on your mortgage payments. There are two types of bankruptcy that can help stop foreclosure: Chapter 7 bankruptcy and Chapter 13 bankruptcy.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is also known as “liquidation bankruptcy.” It is designed to eliminate most of your unsecured debts, such as credit card debt and medical bills. In a Chapter 7 bankruptcy, the court will appoint a trustee to sell your non-exempt assets to pay off your creditors. However, most people who file for Chapter 7 bankruptcy in Philadelphia can keep their homes because of Pennsylvania’s homestead exemption. The homestead exemption protects up to $30,000 of equity in your primary residence.
Filing for Chapter 7 bankruptcy can put an automatic stay on the foreclosure process. This means that your mortgage lender cannot take any further action to foreclose on your home while your bankruptcy case is pending. However, if you want to keep your home, you’ll need to catch up on your mortgage payments or negotiate a payment plan with your lender.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is also known as “reorganization bankruptcy.” It is designed for people who have a regular income and can afford to make monthly payments to their creditors. In a Chapter 13 bankruptcy, you’ll work with a bankruptcy trustee to create a repayment plan that will allow you to catch up on your mortgage payments over a period of three to five years.
Filing for Chapter 13 bankruptcy can put an automatic stay on the foreclosure process. This means that your mortgage lender cannot take any further action to foreclose on your home while your bankruptcy case is pending. As long as you continue to make your monthly payments under your repayment plan, you’ll be able to keep your home.
Common Questions About Stopping Home Foreclosure Using Bankruptcy in Philadelphia
Will filing for bankruptcy stop a foreclosure in Philadelphia?
Yes, filing for bankruptcy can stop a foreclosure in Philadelphia. When you file for bankruptcy, an automatic stay is put in place that prevents your mortgage lender from taking any further action to foreclose on your home while your bankruptcy case is pending.
Can I keep my home if I file for bankruptcy in Philadelphia?
Yes, you can keep your home if you file for bankruptcy in Philadelphia. Whether you can keep your home in bankruptcy depends on the type of bankruptcy you file and the equity you have in your home.
Will bankruptcy eliminate my mortgage debt in Philadelphia?
No, bankruptcy will not eliminate your mortgage debt in Philadelphia. If you want to keep your home, you’ll need to continue to make your mortgage payments or negotiate a payment plan with your lender.
How long does the foreclosure process take in Philadelphia?
The foreclosure process in Philadelphia typically takes around 270 days from the date of the first missed payment. However, the process can be longer or shorter, depending on the circumstances of your case.
How long does the bankruptcy process take in Philadelphia?
The bankruptcy process in Philadelphia typically takes around three to six months for a Chapter 7 bankruptcy and three to five years for a Chapter 13 bankruptcy.
Can I file for bankruptcy on my own in Philadelphia?
Yes, you can file for bankruptcy on your own in Philadelphia. However, it’s always a good idea to consult with an experienced bankruptcy attorney to ensure that you’re taking the right steps and making the best decisions for your financial situation.
If you’re facing the possibility of losing your home in Philadelphia due to foreclosure, filing for bankruptcy may be a viable solution. It can help stop the foreclosure process and give you the time you need to catch up on your mortgage payments. However, it’s important to understand the different types of bankruptcy and the requirements for each before deciding to file. It’s also recommended to consult with a bankruptcy attorney to ensure that you’re taking the right steps to protect your home and your financial future.
Remember, bankruptcy isn’t a quick fix for financial problems. It’s a legal process that requires careful consideration and planning. If you’re struggling with debt and considering filing for bankruptcy in Philadelphia, take the time to explore your options and seek professional guidance.
Hire a professional for help.
If you’re struggling with debt and facing foreclosure in Philadelphia, hiring a professional can help you navigate the legal process of bankruptcy. Call the offices of Sadek Bankruptcy Law Offices today for more information about how we can help you with your home foreclosure.