Nobody could have ever predicted or expected the sheer scale of foreclosures which occur every single day in the United States, and elsewhere in the world. The fact remains however that foreclosures are now affecting people from all walks of life – from the very wealthy to people who have always occupied the lower rungs of the financial ladder.
Now if you\’re reading this article you\’ve already been in the foreclosure process and managed to keep your home by filing for bankruptcy, but now you\’re wondering what to do next?
The first thing you need to understand about bankruptcy is that it doesn\’t eliminate or entirely stop the foreclosure process – it simply delays it until another day unless you take appropriate financial action to remedy the situation you\’re in. If you filed for Chapter 13 bankruptcy then you still owe your entire mortgage arrearage debt which you can pay off by filing an appropriate plan with the Bankruptcy Court. If you filed for Chapter 7 bankruptcy the foreclosure action instituted by your mortgage lender is stayed but once they file the appropriate applications with the Court, namely a Motion to Vacate the Stay they may resume the foreclosure proceeding and therefore you would still be at risking losing your home regardless of that.
The vast majority of people in financial trouble who wish to keep their homes will file for Chapter 13 because they want to be able to keep their home, even though it will take several years to clear up the financial mess you\’re in. Basically as part of Chapter 13 you\’ll have to submit a plan requesting that a Bankruptcy Court approve a plan whereby you would commit paying back your mortgage arrearages through the trustee in either thirty six (36) or sixty (60) monthly installments In addition to making your monthly payment to the trustee you would also have to resume making your normal monthly payment.
In addition to all of the above you need to create a personal/family budget and stick to it except in the most extreme financial emergencies. The vast majority of American households are not run to a budget, so a huge number of people who declare bankruptcy, and have their debts wiped out in the process, wind up in even more severe debt just a few months down the line. This isn\’t because they\’re bad people – it\’s simply because they have no money management skills and have refused to learn any.