for sale sign in front of home

When you’re in debt, you’re likely familiar with the consequences that can arise, from being denied loans to receiving calls from creditors. However, when you receive a notice that your home is in foreclosure, it can be incredibly upsetting. Unfortunately, many are unsure of their options to help avoid this, leaving them vulnerable. Luckily, filing for bankruptcy with the help of a Memphis, TN foreclosure defense lawyer may be the solution you need to help you keep your home. Keep reading to learn more about this process and your legal options.

What Is a Foreclosure?

When you receive notice that your home is in foreclosure, knowing exactly what this means and entails is critical. Essentially, when you owe a debt, a lender may recover the amount you owe by seizing your home and selling your mortgaged property. Continued failure to meet monthly payments or mortgage terms can result in your home facing foreclosure.

Because the lender is taking legal ownership of your property, you will be forced out of your home, leaving you unhoused. As such, the idea of facing foreclosure is not something that should be taken lightly, and it’s imperative to act quickly to do everything possible to prevent this process.

How Can Bankruptcy Help?

When you are in debt and facing foreclosure, understanding your legal options is critical. If other debt-relief options cannot help, filing for bankruptcy may be in our best interest. When you file for bankruptcy, you are granted an automatic stay. This essentially halts all collection efforts against you, including foreclosure. If the lender wants to continue with the sale of your property, they must petition the court to legally continue this process.

Additionally, filing Chapter 13 bankruptcy can help you catch up and stay on top of your mortgage payments while also paying off your arrears, so you may be able to avoid the foreclosure of your home. If you file for Chapter 7, you may find that the courts do not require you to make up missed payments like in Chapter 13.

What Should I Do if I Want to File?

If you are in debt and facing foreclosure but no other debt-relief options have worked in your favor, it may be in your best interest to connect with an experienced bankruptcy attorney who can help you navigate these complex times to fight for the best outcome possible.

At the Arnold Law Firm, we understand that facing foreclosure can be an incredibly complex and overwhelming process. After all, foreclosure can leave you and your family facing homelessness. That’s why we are committed to exploring all potential opportunities to help you fight for the best outcome. Connect with us today to learn how we can assist you during these complex times.