Wyoming Mortgage Debt Lawyers

Many Americans find themselves behind on their mortgages, and these payments, potentially coupled with other costly expenses, such as medical bills or credit card debt, can quickly add up. If you find yourself facing significant mortgage debt, you may feel overwhelmed and unsure of where to turn. Fortunately, if you’re reading this, you’re in the right place. Our skilled Gillette, Wyoming bankruptcy lawyers have been representing clients facing mortgage and other types of debt for years, and we stand ready to help you, too. Contact 307 Bankruptcy for a free consultation today.

What Types Of Bankruptcy Are Available For Mortgage Debt?

When it comes to addressing mortgage debt through bankruptcy, two main options are typically available: Chapter 7 and Chapter 13. Each type of bankruptcy offers unique benefits depending on your financial situation.

• Chapter 7 bankruptcy, often referred to as liquidation bankruptcy, can discharge unsecured debts, such as credit card balances or medical bills, freeing up funds to focus on your mortgage. While Chapter 7 does not eliminate your mortgage itself, it can provide temporary relief from foreclosure through an automatic stay and may allow you to surrender your home without further financial obligation if keeping it is not feasible.
• Chapter 13 bankruptcy, on the other hand, is ideal for those who wish to keep their home but need time to catch up on overdue mortgage payments. Through Chapter 13, you can create a court-approved repayment plan that spans three to five years, during which you can pay off arrears while keeping current on future payments. This option helps you regain control of your finances without losing your home.

Will Filing Bankruptcy Stop Foreclosure?

Yes, filing for bankruptcy can temporarily stop foreclosure through an automatic stay. As soon as you file for bankruptcy, federal law prohibits your mortgage lender and other creditors from taking further collection actions against you. This includes halting a foreclosure sale, giving you valuable time to explore your options and create a plan to address your debt.

In Chapter 7 bankruptcy, the automatic stay may provide short-term relief, allowing you to negotiate with your lender or explore alternatives such as a loan modification or short sale. However, if you are unable to catch up on missed payments or find another resolution, the foreclosure process may resume after the bankruptcy is complete.

In Chapter 13 bankruptcy, the automatic stay lasts throughout the repayment plan, provided you stay current on your agreed-upon payments. This can be a powerful tool to protect your home, as it not only stops foreclosure but also allows you to resolve past-due payments over time.

It’s important to act quickly if you are facing foreclosure, and you should note that the automatic stay does not erase your debt or guarantee you can keep your home indefinitely, so speaking with a skilled bankruptcy lawyer as soon as possible is essential.

Should I Consult An Attorney Before Filing Bankruptcy For Mortgage Debt?

Absolutely. The bankruptcy process can be complex, and mistakes made during the filing process can have lasting financial consequences. Consulting an attorney ensures that you understand all your legal options and make informed decisions about how to proceed.

A knowledgeable bankruptcy attorney will evaluate your financial situation and help you determine the best strategy to address your mortgage debt. They will also ensure that all required paperwork is completed accurately and on time, preventing costly delays or dismissals of your case.

Contact Our Gillette Mortgage Debt Lawyers Today

Here at 307 Bankruptcy, we believe that everyone deserves a fresh start. If you’re facing significant mortgage debt, our bankruptcy lawyers are here to guide you to your safe harbor. Contact 307 Bankruptcy today to schedule a free case evaluation so we can discuss your case.