Foreclosure is something that more and more Minnesotans are faced with every day. With the economic crisis still looming in the background, many of us are feeling the sting in the place we love the most – our homes. Your home is your palace, your sense of pride, your piece of land in this world. When foreclosure threatens to end this dream, then it can leave you not only homeless, but also completely devastated and emotionally drained. There are ways to stop foreclosure before you are forced to give everything up. One of these options is bankruptcy.

Bankruptcy and Home Foreclosure

Both Chapter 7 and Chapter 13 bankruptcy offer home owners an alternative to foreclosure. However, most homeowners will choose Chapter 13 bankruptcy when they are dealing with home foreclosure. Chapter 13 bankruptcy is a less drastic approach to liquidation, or Chapter 7, bankruptcy and allows you to keep what you own and work towards freeing your debt with a three to five year payment plan.

Chapter 13 bankruptcy will consolidate all your unsecured debt into one lump sum that you will work towards paying off every month, as assessed by the federal courts. Chapter 13 bankruptcy will stop foreclosure in its tracks. Under the ‘automatic stay’, as soon as you file for bankruptcy, your lender will be notified and the foreclosure action will stop. You are then free to work out a payment plan that works for you without worrying about losing your home.

Is Chapter 13 Bankruptcy Right for Me?

Avoiding foreclosure is one of the biggest reasons to file for Chapter 13 bankruptcy but there are several others times when this type of bankruptcy may be the right choice for you. If you are facing wage garnishment and annoying creditors, then Chapter 13 bankruptcy can put an end to this. Chapter 13 bankruptcy is normally for those with a reliable stream of income every month and for those who simply cannot keep up to their payments, both secured and unsecured.

This could be for any number of reasons. You may have suffered a wage demotion at work; you may have recently gotten divorced; your mortgage payments may have increased; you may have succumb to an illness and now have expensive medical bills to pay off. Whatever the reason, there is an alternative to losing your home. Chapter 13 bankruptcy just might be your best option. Contact a Minneapolis bankruptcy attorney to learn more about Chapter 13 and Chapter 7 bankruptcy and determine if this is the best option for your situation.

Contact a Minneapolis Foreclosure Attorney

Foreclosure is no one’s first option. After all, you did not purchase your home thinking that you could lose it to the banks a few short years down the road. However, foreclosure is something that affects more and more Minnesotans every day. Foreclosure can not only take your home, but it can also affect your sense of pride and self worth. Know your options and your legal rights when it comes to home foreclosure and bankruptcy. Speak to a professional Minneapolis bankruptcy lawyer today.

Olson Law Firm has years of experience in bankruptcy cases and home foreclosure situations and thus can help you through this financial mess. For a free consultation regarding your bankruptcy and home foreclosure options, contact Olson Law Firm today at 612-816-2322.