Home Foreclosure – Maine
While Chapter 7 bankruptcy, or liquidation bankruptcy, means that you’ll need to sell assets to cover your debt, a Chapter 13 bankruptcy can stop the foreclosure process. If the court determines that you have a viable plan to pay off your debt, the foreclosure will stop. You must, however, be able to begin making your mortgage payments as they become due and continue with your plan.
After the Chapter 13 payment plan is written, you cannot rewrite the terms of your mortgage. That’s why it’s important to work with a bankruptcy attorney to create a plan that you will be able to stick to. You also must pay off the amount that you are behind on your mortgage within five years.
When filing for Chapter 13 bankruptcy, you should also consider administrative costs and fees that will be part of the process. In the state of Maine, you will have to pay the fees of your Chapter 13 Trustee. The Trustee works on a commission basis and will take ten percent of the gross amount that you pay into the plan.
A challenge of saving your home from foreclosure through Chapter 13 bankruptcy is that you must be able to afford your monthly mortgage payments as well as the monthly payment plan payments that are working off your debt. If you have a mortgage payment that you cannot afford or an accumulated debt that you won’t be able to pay off within five years, then Chapter 13 bankruptcy may not be right for you. You should consult with an experienced bankruptcy attorney at McCue Law Firm to help you decide which bankruptcy chapter fits your needs.
When Do I Need To File Chapter 13 Bankruptcy?
If the home that is facing foreclosure is your principal residence, you have until the real estate auction to file Chapter 13 bankruptcy. However, if the auction has already taken place, you no longer own your home. It’s important to keep a close eye on the foreclosure process and the deadlines involved in the proceedings. Contact an experienced attorney sooner rather than later.
Consult An Attorney
If you’re facing foreclosure, your next step should be scheduling a consultation with an attorney. No two foreclosure, or bankruptcy, cases are the same, and our team can help you understand your legal options. Contact us today to schedule a consultation so that we can review your case and help determine the best course of action.
McCue Law Office – Maine Law Firm
Our law firm has been representing clients across the state of Maine for more than 35 years. We have the experience and expertise to be by your side for any legal need that may arise. Along with bankruptcy law, we also practice personal injury, wills & probate, real estate, social security disability, workers’ compensation, and more. Contact us today to schedule a consultation.