Illinois Bankruptcy Attorney

Owning a home is a source of great pride for most people. Unfortunately, it can also be a source of great stress when you fall on tough financial times. The cost of homeownership adds up quickly, and those costs can be overwhelming for some. If you have been a victim of predatory lending practices or have recently seen your mortgage payment increase significantly, you may be facing the threat of foreclosure.

Losing Your Home

If you fall behind on your mortgage, your lender has the right to foreclose on your property. This is happening to people throughout Illinois and around the country in record numbers. Many of those facing foreclosure consider bankruptcy as a possible way out. Here is how both types of individual bankruptcy affect your real estate holdings:

Chapter 7 bankruptcy: If you are behind on your mortgage payments and you file for Chapter 7 bankruptcy, an automatic stay will immediately be placed on your creditors. The automatic stay will temporarily prevent your creditors from collection attempts, repossessions and foreclosures. This stay will only be in effect so long as your case is open or the court keeps it in place. Chapter 7 bankruptcy can buy you some time on your foreclosure, but it is only a temporary fix. Second homes and other real estate holdings are generally non-exempt.

Chapter 13 bankruptcy: Under Chapter 13, you can stop a foreclosure for the length of your repayment plan or beyond. Also called a reorganization, this form of bankruptcy allows you to submit a plan to repay your back mortgage payments along with your current mortgage payments. As long as you continue to make the agreed upon payments, you can keep your property.

If you are facing a possible foreclosure on your real estate property,contact us at Northwest Suburban Bankruptcy. We will evaluate your financial circumstances to determine if bankruptcy would be a good solution for your debt problems.