Best Bankruptcy Lawyers in Pensacola, FL

If you are facing a homestead foreclosure, a Chapter 13 bankruptcy may be the right option for you, assuming you have a steady source of regular income coming in. A Chapter 13 allows debtors to propose a repayment plan, either three or five years, based upon their income level. If debtors follow the plan to conclusion and meet certain conditions, they will receive a discharge of the debts included in the plan. The repayment plan includes missed mortgage payments up to the time the case is filed, which allows the debtor to become current on the mortgage by the end of the proposed plan. This can be particularly helpful for borrowers when they owe a large arrearage to the mortgage company and are unable to come up with a lump sum, and where the mortgage company is not willing to work with them. The foreclosure process is halted if it has begun once the case is filed. However, the borrower must continue to also make their regular mortgage payments to the mortgage company during their plan or the mortgage company can start the process back up. If the mortgage company had stopped accepting payments prior to the bankruptcy case being filed, they will be required to start accepting payments again once the bankruptcy case has been filed.