One of the toughest moments for an individual or business person is the point where they realize that their business is no longer solvent and that they have accumulated more debt than they can repay. If you have reached such a point, the law has provisions that allow you to file for bankruptcy and get a fresh start financially. However, to carry out the process successfully, you will need the assistance of a bankruptcy foreclosure lawyer. Here is what you need to know about the process.
Filing for bankruptcy
There are certain requirements that you will be required to meet when you are filing for bankruptcy. Below are some of these requirements:
1. You will need to prove that your income is either equal to or less than the median average for your state.
2. The court may need you to attend the compulsory debt counseling sessions at least 180 days prior to your filing.
3. You will need to show that you hadn’t tried to file for another debt relief for at least 6 months before you file for bankruptcy.
4. You will be needed to list all your assets and all your debts.
These are some of the requirements that a lawyer will help you fulfill to avoid getting turned down.
Bankruptcy and foreclosure
If you are filing for a chapter 13, it is possible to overturn an imminent foreclosure. When you successfully file for a chapter 13, a stay is placed on all of your personal assets. This means that if a NOD had been issued to you, the mortgage company cannot auction off your house.
Also, there are circumstances under which part of your mortgage debt could be reduced. This process is known as lien stripping. For instance, if you took out a first mortgage for the house and after some months took a second. If the total value of debt you owe the mortgage company is more than the value of the house, the second mortgage could get written off.
These are some of the things that a bankruptcy foreclosure lawyer will help you understand about the process of getting a mortgage. With the help of an expert like Joseph I. Wittman, Attorney at Law, you could manage to save your house from foreclosure.