Countless people throughout Utah are in danger of losing their home. Many are responsible hard working people who have suddenly found themselves struggling with overwhelming debt. It can even happen you or someone you know. You have worked hard for the right to own a home and facing the possibility of losing it to foreclosure is a terrifying prospect. If you are behind on your mortgage payments or have been notified of your lender’s intent to foreclose, don’t feel like you have no choice but to give up your home. Filing for bankruptcy can stop foreclosure and give you the time you need to get your financial affairs in order.
Many Utah homeowners are not aware of their rights when it comes to debt relief. But there are several viable solutions. An experienced Salt Lake City foreclosure defense attorney can help you understand your options and get started on a path that leads to freedom from your debt without losing your home. At the Salt Lake City law office of Justin M. Myers, Attorney-at-Law, LLC, we have worked with many clients facing foreclosure.
When you file for bankruptcy, you receive an automatic stay against all collection activity from creditors and lenders. This includes stopping foreclosure procedures. Filing for Chapter 13 bankruptcy allows you to consolidate all your debt, including mortgage arrears, into one payment plan. You then repay the back mortgage payments over time and continue to make your regular mortgage payments as usual.
Another advantage of Chapter 13 bankruptcy is the possibility of eliminating any additional mortgages on your home. This is referred to as lien stripping. If the value of your home is less than the amount you owe on the primary mortgage, any additional loans secured by the home could be stripped away since there is no property value to support them.
Along with a bankruptcy petition and supporting documentation, people filing for Chapter 13 bankruptcy will also need to include a preliminary repayment plan which is usually developed during credit counseling. After the creditors meeting you will attend a meeting to confirm your repayment plan. Once your repayment plan has been successfully completed, you will receive a discharge of your debts.
A The means test measures your disposable income against that of other Utah citizens and ensures that your application for bankruptcy is not an abuse of the system.
After the creditors meeting has been completed, the trustee will identify your exempt property and your nonexempt property. Your nonexempt property may be sold at auction and the funds used to repay your creditors. If your trustee decides that none of your property can be sold, you would lose nothing.
After the funds, if any, have been distributed to your creditors, you will receive a discharge and will no longer have any personal responsibility for those debts.
It can be easy to fall behind on your mortgage payments. The loss of a job, a divorce or high medical bills can quickly place anyone in a difficult financial position. It is vital to seek representation from a legal professionals who can help provide effective legal solutions. My name is Justin M. Myers and I am a Salt Lake City foreclosure defense attorney. My staff and I always place a priority on placing the each client in the best position to succeed. Contact our office today to learn more about stopping foreclosure. From the moment a client visits for an initial consultation and all the way through trial, my staff and I will always be in your corner. We are available during regular business hours and by appointment evenings and weekends. You can reach us by phone at 801-505-9679 or via e-mail.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.