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Are you falling behind on your mortgage? The thought of losing your home is terrifying, especially when you have children or pets. However, you might have a second chance if your situation qualifies for Chapter 13 bankruptcy in Raleigh, NC.
Can a Lender Take My House to Cover My Debt?
North Carolina allows creditors to repossess property if the loan is delinquent. So the answer is yes, they can. However, it’s not immediate and automatic.
Filing for Chapter 13 bankruptcy in Raleigh with the help of Weik Law Office can offer protection against foreclosure while you pay off your debt over time with an affordable repayment plan.
It also stops creditor harassment, lawsuits, and wage garnishments. Read on to learn more about how this works.
What Is Chapter 13 Bankruptcy?
Chapter 13 is a type of personal bankruptcy that allows you to pay off your debts over time by making monthly payments. The repayment plan lasts for three to five years. It is meant for people who have a source of regular income, thus the term “Wage Earner Plan.”
Chapter 13 can wipe out the majority of your unsecured debts, such as medical bills, credit card loans, and personal loans. It can also help you save your property, such as your home. Here’s a more detailed look at Chapter 13 bankruptcy in Raleigh.
Bankruptcy and the Foreclosure Process
Once you’re behind on your mortgage, there is a foreclosure process that takes place. Here’s a quick breakdown:
- First, your lender will notify you that you’ve gone delinquent on your mortgage.
- They may give you a grace period, such as 10 days, before they charge you late fees. Check your mortgage contract for any grace period information
- If you’re still unable to pay, your lender can start contacting you to discuss your loan mitigation options.
- The lender will continue sending notices and making phone calls. If you don’t respond or fail to make payments, they can file the foreclosure paperwork in court.
The entire full process for North Carolina foreclosures is much more complicated than that. We strongly recommend talking to a Weik Law bankruptcy attorney in Raleigh NC to learn more about what to expect when you’re in foreclosure.
Why You Need the Protection of the Automatic Stay
Creditors can be savage with collections. They often use harassment tactics to try to get you to pay. They will call and email you at all times of the day, threaten to contact your friends and family, and even approach your employer. These actions can be ruthless.
You’re instantly covered by the automatic stay when you file Chapter 13. The stay is a court order that stops most creditors from contacting you. This includes phone calls, letters, wage garnishments, and lawsuits.
The stay doesn’t stop your mortgage payments from increasing. It just gives you time to get caught up and get your finances in order.
However, the peace of mind you get from this protection is immeasurable. The automatic stay also gives you time to consult with a Weik bankruptcy lawyer in Raleigh to plan your strategy.
What Else Can Chapter 13 Bankruptcy Do for Me?
Chapter 13 bankruptcy gives you breathing room to save money and get back on track financially.
In addition to stopping foreclosure proceedings, you can also:
- Repay your debts over time
- Pause foreclosures, garnishments, lawsuits, and vehicle repossessions
- Prevent utility service shut-offs
- Make reduced monthly payments
- Renegotiate the terms of secured debt through a repayment plan
- Erase most of your debts
- and more
Chapter 13 bankruptcy is meant to be an escape route for people who are drowning in debt and unable to make ends meet. If you want to keep your home, try filing for bankruptcy before the foreclosure sale goes through.
Take Charge of Your Financial Future Today
Chapter 13 bankruptcy is a serious financial decision that can help you regain control of your future.
Most importantly, you don’t have to do this alone. Attorney Weik has helped thousands of people just like you with the legal guidance and support they need to get a fresh financial start.
Call Weik Law Office today at 919-845-7721 for a free consultation, and set up a time to speak with one of our friendly professionals.