Is there a catch to bankruptcy saving your home from foreclosure?
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Chapter 13 is no picnic either. They will garnish your wages and leave you pratically nothing to live on. Do you have a relative or friend that can buy the house from you for awhile until you can get back on your feet? Or perhaps even selling it outright would be better than losing it. How much equity do you have in the home? Mortgage lenders will refinance up to 65% of the home's value to bail you out of foreclosure. If that isn't enough, perhaps you have access to a retirement fund (401k, IRA, etc) and you can bring some out of pocket.
It will only temporarily save your home. There is no free ride.
The catch is to pay your bills!
that and your credit will be shot for a decade at least - besides bankruptcy doesn't mean you will escape your mortgage...you still have an asset like - your house
are you in the united states? your property tax CAN'T be raised accept in small increments each year... your taxable value is tied to your state equilized value. tell me more about your situation and i may be able to give you some advice.
Here's the Deal
Chapter 13 you will need to pay your plan plan payment on time and not default. If you were to default the lender could file a Relief and if they were to get relief they could proceed with foreclosure.
They are just unable to sue you for the defiency amount if any.
Chapter 13 is actually a "reorganization" bankruptcy. You have to repay your debts in 3-5 years depending on how much you owe and how much you earn. You basically live on an "allowance" every month until you debts are paid off. But if you don't have a reliable source of income,stable job, you cant qualify. Because your paycheck will be broken down to pay off your lenders and you will be left with just enough money to live on.
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