Foreclosure Defense

Illinois Foreclosure Defense Attorneys

Unfortunately home foreclosures are more common than ever. Millions of Americans are finding themselves in severe financial difficulty and faced with the prospect of losing their home to foreclosure. If you are facing foreclosure or the threat of foreclosure, there are measures you can take to avoid or stall the proceeding. Both Chapter 7 bankruptcy and Chapter 13 bankruptcy can help you out of this difficult situation.

How Chapter 7 Bankruptcy Can Help With Foreclosure

If you have fallen far behind in your mortgage payments and foreclosure is imminent, Chapter 7 bankruptcy may be able to buy you some time to workout a deal with your lender or make arrangements for alternative housing. When you file for bankruptcy, an automatic stay goes into effect immediately that halts all creditor collections including foreclosures. While the bankruptcy is pending (usually 2 to 4 months), you can use that time to negotiate with your lender or save up to find a new place to live. Additionally, Chapter 7 bankruptcy discharges debt secured by your home and exempts you from tax liability linked to the home foreclosure.

How Chapter 13 Bankruptcy Can Help with Foreclosure

Using Chapter 13 bankruptcy, you can workout a payment plan to repay late mortgage payments over time so that you can keep your home. You must continue to pay your current mortgage payment in addition to making payments on your repayment plan, however. Therefore, you must have enough income each month to meet both obligations.

To determine if Chapter 7 bankruptcy or Chapter 13 bankruptcy can help you with foreclosure, call us to discuss your situation at a free initial consultation. At Springer Brown, we are experienced in helping consumers get relief from financial hardship through bankruptcy. We serve consumers in DuPage, Kane, Kendall and Will County.