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Foreclosure help may be available to struggling homeowners

The personal bankruptcy process can serve a number of different purposes to help individuals and families achieve a fresh financial start. Personal bankruptcy options can provide debt relief and may also help a family struggling to save a family home from foreclosure. There may be options available throughout the foreclosure process to help an individual or family attempting to save their home.

One option that may help with both debt relief and stop foreclosure is a Chapter 13 reorganization bankruptcy. Chapter 13 bankruptcy allows a filing party with a reliable source of income to restructure debts into a repayment plan the filing party can afford and that the court approves. While the automatic stay that goes into force once the filing party has filed for bankruptcy may stop foreclosure proceedings while the court confirms the filing party's repayment plan, Chapter 13 bankruptcy may permanently stop foreclosure proceedings.

Following confirmation of the repayment plan, the filing party will repay missed payments over the period of the repayment plan. It is important to keep in mind that once the filing party files for bankruptcy, an automatic stay goes into effect that prevents creditors from pursuing any collection actions against the filing party until the bankruptcy proceeding has been resolved.

Different bankruptcy options are available for different circumstances and each has important requirements and deadlines that must be met so it is important to have a careful understanding of the bankruptcy process. Because of the different options available, individuals seeking a fresh financial start, and are overwhelmed by the stress of possibly losing a family home, should be familiar with the legal options that may be available to help them enjoy debt relief and retain what is important to them.

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