Debt Relief Law Offices of Tampa Bay

Tampa Bankruptcy Attorney 727-849-3328

Home Foreclosure

Chapter 7 bankruptcy allows you to permanently discharge secured and unsecured debts. However, if you want to discharge a secured debt, you must return the security to the creditor. So, if you no longer want to keep your home or your car, you must return the home or the car to the lender. Sometimes, people believe they can keep the home or car without having to pay for either, but that is not true.

Because the note on your home is secured by a mortgage, you cannot discharge the obligation on your home and keep the property under Chapter 7. If you want to keep your home or your car, you must keep making the mortgage payments or car payments. In fact, many car lenders will insist that you sign a reaffirmation agreement whereby you agree to keep making the car payments after the bankruptcy.

Chapter 13 allows you to discharge some of your unsecured debt, stop foreclosure and catch up on mortgage arrears, repay the IRS for tax obligations which cannot be discharged, and discharge or strip a second or third mortgage under certain circumstances. We can help you use a Chapter 13 filing to stop foreclosure proceedings and to set up new payment arrangements within your means.

When you file for bankruptcy, you are protected by the automatic stay. This prohibits your creditors from calling, writing or pursuing legal action to collect a debt. Accordingly, your bank or mortgage company cannot continue to pursue foreclosure proceedings while a bankruptcy is in process. Often, this can give you the break you need to catch up on home loan payments. In addition, if you can discharge other debts in bankruptcy, you may now have the means to make your house payments.