What can you do if you are late on your mortgage and/or car loans?

Are you like so many others in Alabama or Georgia who are currently behind on their mortgage and/or car loans? There is help available to you.

Declaring bankruptcy can help you keep your home and car while clearing the way for a better financial path. Once a bankruptcy petition has been filed, the court will impose an automatic stay. An automatic stay prevents creditors contacting you directly. They can only contact your attorney.

How filing bankruptcy affects your mortgage

If you are behind on your mortgage payments, you might be dangerously close to going into foreclosure. Many consumers don’t know that a bankruptcy petition will stop foreclosure and save their home.

The type of bankruptcy you file, either a Chapter 13 or Chapter 7, will affect your mortgage. If you decide to file a Chapter 13 bankruptcy, you may include your past due payments in your Chapter 13 plan, and you must continue to make all of your mortgage payments to your mortgage company.

When you file a Chapter 7 bankruptcy, your attorney will look at the state exemptions as well as the amount of equity in your home. Even when filing a Chapter 7, which wipes out most of your debts, you still have a good chance of keeping your home.

How filing bankruptcy affects your car loans

If you are behind on your car payment, you can file for bankruptcy and still keep your vehicle. The court understands that this is your main means to get to work every day. Once you file, the court will issue an automatic stay and your vehicle will be saved from repossession. If you decide to file a Chapter 13, you will be able to pay your car loan at a much more affordable rate.

Don’t let the stress of your financial situation affect you negatively any longer. Give our Alabama and Georgia Bankruptcy Attorney a call today to set up a free, no-obligation consultation. Take the initiative and don’t delay another day. Our office can give you the resolutions you need.