How Can Bankruptcy Help Me Save My Home?

How can bankruptcy help me save my home? This is a question we often hear from people who are overwhelmed by debt. There are many ways that declaring bankruptcy can help you save your home from foreclosure, although most people think of only one: Bankruptcy creates an "automatic stay," putting a stop to the foreclosure proceedings. The default that caused the foreclosure is then handled within the scope of the bankruptcy proceedings, giving the homeowner more control over making payments and staying in the home.

At the Morristown, New Jersey, law office of Ast & Schmidt, P.C., we have also seen many other ways in which bankruptcy helps save homes from foreclosure:

  • Elimination of debt that keeps you from making mortgage payments: Most people in financial trouble are dealing with more than one kind of debt. They may face credit card debt, medical bills or legal judgments against them. Bankruptcy can help you eliminate these debts so that you can focus on what's really important — making your mortgage payments and staying in your home.
  • Stopping wage garnishment: In New Jersey, wage garnishment generally takes 10 percent of your gross pay, leaving you less money to make mortgage payments and to pay your living expenses. By declaring bankruptcy, you can put an end to wage garnishment. This allows you to use your income to take care of your family's needs.
  • Getting rid of your unsecured mortgage: It may be possible to have an unsecured second or third mortgage stripped off in Chapter 13 bankruptcy. This means that you can focus on paying your first mortgage and stay in your home with a more manageable secured debt load.

Contact A Morristown Bankruptcy Attorney

To save your home from foreclosure, talk with an experienced bankruptcy lawyer. Call Ast & Schmidt, P.C., at 973-984-1300 to schedule a free, initial consultation with an experienced bankruptcy lawyer. You may also simply complete our online contact form.

We offer flexible hours — Monday through Friday — with all meetings by appointment. Evening meetings are available. Our office is conveniently located across the street from the Morris County Mall, and we have off-street parking.

Ast & Schmidt, P.C., is a debt relief agency. We help individuals file for bankruptcy relief under the Bankruptcy Code. The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.