Stop Foreclosure Through Bankruptcy
Lose the Debt, Keep the Property – Call Us for Help!
Are you behind on mortgage payments and facing home foreclosure? Filing for bankruptcy could be the best option for stopping foreclosure and getting your debt problems under control. At Atlas Consumer Law, we have significant experience handling bankruptcy cases for clients throughout Chicago and the surrounding areas. Our attorneys can help you explore debt relief strategies that may help you keep your home while resolving your debt problems.
Contact Atlas Consumer Law at (312) 313-1613 to speak with a Chicago bankruptcy attorney.
Save Your Home and Eliminate Debt with Bankruptcy
In Illinois, there are two ways that your property can be taken against your will: eminent domain and foreclosure. If the bank or mortgage company is trying to foreclose, you can fight back to retain your home. In fact, it may be possible to keep your property and discharge the debt. At Atlas Consumer Law, our Chicago bankruptcy lawyers level the playing field for honest, hard-working property owners who have been manipulated by the mortgage industry.
Traditionally, Chapter 13 has been the only way to keep one's home. Through Chapter 13, you reaffirm your intention to pay the monthly mortgage and agree to pay the arrears over time. Assuming you are able to make all 60 installments on your repayment plan, you are still stuck with the same mortgage. In Chapter 7, you do not have to reaffirm the mortgage or make up the arrears. In exchange for surrendering the property, the deficiency is discharged.
Can I Surrender My Home without Actually Leaving?
But what if you surrender the property without actually leaving your home? The judicial foreclosure process typically takes 14 to 18 months to complete. Until you are asked to leave by the sheriff, it is still your home for all practical purposes. If you keep making the house payments, taxes and insurance, you can maintain residence indefinitely. Meanwhile, you would still receive your Chapter 7 bankruptcy discharge, giving you a clean financial slate.
According to the U.S. Department of Housing and Urban Development, you may be eligible for an FHA loan two years after a Chapter 7 discharge. In fact, under HUD criteria, you could be eligible for an FHA loan as soon as 12 months after a discharge if you can demonstrate your financial affairs are under control and you are not likely to lapse into debt. Ideally, you would be able to remain in your current home long enough to transition into a new house.
Contact Atlas Consumer Law Today to Get Started
If you are considering bankruptcy to stop foreclosure, it is important to act in a timely manner. If a crucial deadline passes, your options can be limited significantly, and a poorly timed bankruptcy can leave you worse off than you were before. Our attorneys have handled numerous bankruptcies and can guide you through all stages of the process. If bankruptcy is not right for you, we can help you explore other options such as foreclosure defense litigation.
Are you facing foreclosure or other debt problems in Chicago? Contact us for an initial consultation.