A New Jersey report releases this summer indicates that house foreclosures are on the rise again with Somerset County seeing a 54% increase in first time foreclosures and Monmouth County seeing a 44% rise in first time foreclosures. Due to massive layoffs and business closures in the State and the rising cost of everyday items, trying to keep a roof over your head is tough. While many people shy away from bankruptcy as a way of getting a fresh start and fear of losing their home, bankruptcy when done right can in fact save it and give you the freedom to manage a payment plan and save your home, as well as give control back to you and not the mortgage company.

1. A Chapter 13 Bankruptcy allows you pay your missed mortgage payments over 60 months.

You will have to continue to stay current but if the bank is not giving you options of paying your past due payments over time, bankruptcy can help with that. Mortgage modifications have been more and more and difficult to obtain without court involvement. Depending on your interest rate, you may be able to also obtain a lower interest rate with bankruptcy.

2. A Chapter 13 Bankruptcy stops interest on other debt.

Those credit cards just keep getting out of control because the interest rate is just so high and minimum payments don’t even cover a dent in what you. A Chapter 13 bankruptcy will stop continuing interest allowing you to catch up on paying off some of the principal even if your income and assets require you to pay back all your unsecured credit card bills.

3. A Chapter 13 Bankruptcy may result in your not having to pay some or all of your unsecured bills.

IF you do not have sufficient residual income and assets, a Chapter 13 Bankruptcy may still result in the discharge of some or all of your unsecured debt. This means you won’t have to pay those back at all. This will free up funds to help your family make ends meet and pay your mortgage going forward.

A Chapter 13 Bankruptcy is not right for everyone but with careful legal advice on whether is is the best avenue to take may be an option. Saving your home would mean you save moving costs, your kids stay in school, you stay by your friends, and you continue to savor the memories you made.

If you are facing foreclosure or a sheriff sale, call the Bankruptcy lawyers at Tomes Law Firm to discuss your options. Call us at 732-333-0681 or book online at tomeslaw.com