Preventing Home Foreclosure

Foreclosure is something everyone wants to avoid. Most people will do anything they can to save their homes. If you are dealing with insurmountable debt and considering bankruptcy or other options for stopping foreclosure on your home, it is important to talk with an experienced lawyer who can help you consider the options available to you.

At The Law Offices of Ronald I. Chorches, you will find a lawyer with decades of experience handling bankruptcy and other debt-relief solutions to help clients prevent house foreclosures in Hartford, Connecticut, and the surrounding areas. With a shared dedication to helping clients find a fresh financial start, we will work with you personally to discuss your options and help you find the solution you need.

Will Bankruptcy Help Me Save My Home

For most people facing serious debt problems and considering bankruptcy, the first and most pressing question is, “Will bankruptcy save my home?”Indeed, your house and land most likely represent your most valuable assets, besides being your home. It is critical to work with an experienced lawyer who can help you through the bankruptcy process or find an alternative to bankruptcy that can help you save your home.

Foreclosure Can Give You Peace of Mind

People often think of foreclosure in strictly financial terms. What does it mean for your credit score? How will it impact your ability to get a loan in the future? These are important questions, but some experts point out that it’s more than money. There is also an emotional side. There’s a mental side. They claim that losing a home can be traumatic in the same way as losing a loved one or getting divorced.

For instance, a person may have family memories or even childhood memories in the home. Maybe he or she grew up there and bought the house from his or her parents when they moved. Losing it to foreclosure means the person can never again go back to these places that are so ingrained in his or her life.

People often have a lot of pride in their homes. They may even view them as an indicator of success. Losing the house can make it feel like the person’s entire life has been a failure. This is clearly going to have more of an impact than just needing a new place to live. On top of that, there’s the aspect of community. Neighbors have become friends. Family members may live nearby. People are connected to more than just their houses, and that’s also lost in foreclosure.

Powerful Tools For Stopping Foreclosure

If handled properly, bankruptcy is one of the most powerful tools available for stopping foreclosure and saving your home. In addition to the automatic stay, which prevents lenders and their agents from engaging in any collections activities for the duration of the bankruptcy process, bankruptcy also provides long-term solutions for saving your home.

In Chapter 7 bankruptcy, you can keep up to $75,000 in equity. By eliminating most of your other consumer debt, we could put you in a position where you could continue making your mortgage payments and keep your home. Similarly, in a Chapter 13 bankruptcy, we could help you get onto a three-year or five-year payment plan that will be more manageable for you, allowing you to keep your home.

Emergency Foreclosure Defense

Helping clients through the bankruptcy process as a means to stopping foreclosure usually requires early intervention. In some cases, a foreclosure is imminent. If this is your situation, contact us. We can begin negotiations with your mortgage lender and to modify your loan and find other bankruptcy alternatives that could help you save your home.

Although bankruptcy is a scary prospect, it is often better than foreclosure. Foreclosure is a permanent stain on your credit. But, bankruptcy allows you to start fresh. If you are currently facing the possibility of bankruptcy, it may be helpful to contact a lawyer with experience in foreclosure. They can take you through your options and may help save your home.

How To Stop Foreclosure Through Bankruptcy

Chapter 7 and Chapter 13 bankruptcy are powerful tools for helping you save your home. First, bankruptcy comes with an “automatic stay,” which prohibits collections agencies and lenders from engaging in any collections activities. This includes all collections actions and creditor harassment, including phone calls, repossession actions and foreclosures.

Declaring Chapter 13 bankruptcy lets you set up a payment plan that allows you to pay off your debt. But, keep in mind that you will need enough money to pay off both your debt and regular mortgage payments. Chapter 13 bankruptcy can remove second or third mortgage payments as well.

Chapter 7 bankruptcy eliminates debt attached to the home, such as mortgages. It also forgives tax liabilities for losses that the lender takes on due to the homeowner’s default. For this to apply, the owner must have used loans given by the lender for home payments or improvements.

There are some other things to note about Chapter 7 bankruptcy. First, it does not guarantee that you will keep your home. Also, the court may force you to give up some of your more valuable possessions to pay your debt. And, you may be ineligible for some of these laws due to your income levels.

There are still some ways in which creditors can counter these measures. One is if the lender files to lift the stay. Lifting the stay is when a lender asks the bankruptcy court to proceed with the sale. If they are successful, then you may not get as much time as you could have. You may still have approximately two months or more, though. It depends on when the lender begins the process.

Keeping Your Home Under Personal Bankruptcy

Few things worry those who are facing bankruptcy more than the fear of losing their most valued asset  their home. Under Chapter 7 bankruptcy, you will be able to delay foreclosure. And because much of the rest of your debt will be eliminated, you may be in a far better position to catch up with your mortgage and prevent foreclosure altogether.

How Exemptions Can Help

There are also generous exemptions for bankruptcy filers in Connecticut, allowing you to shield a significant amount of equity in your home from the bankruptcy proceedings.

Exemptions are tools that can be used to help you keep your home. The federal government allows you to exempt the equity in your primary residence for up to $21,625, or double that for a married couple. You can claim either the federal or the state exemption, and under Connecticut exemptions you can protect up to:

  • $75,000 of the equity in your home
  • $150,000 if you are filing a joint bankruptcy with your spouse

At our experienced bankruptcy law firm in Hartford, CT, we counsel you in bankruptcy and foreclosure defense matters. Our lawyers will discuss all your options with you so you make a decision that will give you peace of mind while getting back on your feet. In some cases, this may include looking at Chapter 13 as a better bankruptcy option  particularly if you have significant equity in your home and a good likelihood of being able to pay off your debts in a three- to five-year time frame.

Finally, and perhaps most significantly, bankruptcy can allow you to eliminate debts and put you in a position to save your home. With Chapter 7, you might be able to eliminate your other debt significantly enough to allow you to make your mortgage payments again. Chapter 13 could put you on a three-year or five-year plan that includes monthly payments that are more manageable for you.

Foreclosures often take several months. Thus, it gives homeowners some time to assess their options. One of the more successful options is to declare Chapter 13 or Chapter 7 bankruptcy. It forces creditors to stop collecting. It will also postpone the foreclosure until the court finalizes the bankruptcy.

Bankruptcy Alternatives For Saving Your Home

An impending foreclosure can be stressful and scary. And, often, it seems like the only way out of debt. But, there are other methods to pay off your dues. Bankruptcy may be an option not only to start fresh but also to save your home.

At The Law Offices of Ronald I. Chorches, we also offer mortgage modification services. Through mediation or other forms of negotiation, we have been successful in working out mortgage modifications that could include lower payments, lower interest rates and even lowered principal.

Foreclosure Statistics in Connecticut and Nationally

During June of 2017, ATTOM Data Solutions reported that the country’s foreclosure rate improved significantly for the first time since November of 2015. June of 2017 marked a decrease in foreclosures by as much as 22 percent for the first time in many years. Currently in the United States, there are just under 75,000 total properties in foreclosure.

AATOM in their mid-year analysis of foreclosure statistics, noted that these types of properties have become very hard to come by. They contend their rarity in today’s society has made them much more sought after by buyers. In states like Connecticut, that continue to experience higher-than-average foreclosure rates, homeowners continue to struggle paying their mortgages on a monthly basis.

In Connecticut in particular, one out of every 200 homeowners currently find themselves facing foreclosure. That number equates to an increase of nearly 45 percent over the time frame between January and June of 2015 and a 3 percent increase over the 2016 rate from across those same months.

When it comes to 10 states with the most foreclosures, Illinois, Maryland, Delaware and New Jersey have worse rates than Connecticut. In New Jersey alone, one out of every 101 homeowners is believed to be facing foreclosure.

Only Nevada, Florida, South Carolina, Ohio and New Mexico have less foreclosures than Connecticut among the top 10. One in every 272 homeowners in New Mexico has been threatened with a foreclosure.

If you’re facing and trying to prevent foreclosure and you want to learn about the options that may exist to allow you to keep your home, then you may benefit from discussing your case with a Hartford, Connecticut, bankruptcy attorney.

Contact The Law Offices Of Ronald I. Chorches

At The Law Offices of Ronald I. Chorches in Hartford, Connecticut, we help clients facing significant mortgage debt. With decades of experience in bankruptcy and related legal disciplines, attorney Chorches can work with you to find a solution and help you find a fresh financial start. Talk with an experienced attorney about how you can save your home. Call us at 860-952-3878 or email us to schedule your free bankruptcy consultation.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.