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Can bankruptcy save your home?

When South Carolina homeowners find themselves having financial problems, the possibility of foreclosure may become a significant concern. While some people are able to make their mortgage payments while trying to manage their debt, others cannot. This puts these consumers at risk of losing their home and having to find a new place to live.

Unfortunately, there are situations where responsible people find themselves in a financial predicament. Attempts at budgeting and negotiating with creditors may fail, creating a situation where debtors may find it impossible to get caught up on their financial obligations. This is particularly true in situations where the debtor has lost his or her job or has high medical expenses. These people often do not have enough income to cover such necessities as food, utilities and housing payments.

The threat of foreclosure is absolutely a serious situation. Individuals who are unable to make mortgage payments are often advised to contact their lender or a local housing counselor to discuss their options. If it is impossible to resolve the situation with a mortgage modification or forbearance, one possible option is filing for Chapter 13 bankruptcy. This entails repaying indebtedness over a period of three to five years pursuant to a court-approved plan. While the lien will not be removed, the plan could provide a way to catch up on past-due mortgage payments while keeping current.

Individuals considering bankruptcy as an alternative to foreclosure may benefit from speaking with an experienced bankruptcy attorney. Chapter 13 is designed for people who have a regular source of income, and there are other eligibility requirements that the attorney can outline.

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The Huggins Law Firm, PA

Columbia Office
1812 Lincoln Street
Suite 201
Columbia, SC 29201

Phone: 803-764-1558
Fax: 803-764-1563
Columbia Bankruptcy Office

Columbia Office

Charleston Office
925-D Wappoo Road
Charleston, SC 29407

Phone: 843-509-0039
Fax: 866-481-2325
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Charleston Office