How can you avoid foreclosure?

Connecticut residents can fall into debt for numerous reasons. One possible risk is being unable to pay your house off, in which case it will be foreclosed. We at the Grafstein & Arcaro, LLC will discuss ways you can avoid foreclosure.

There are several ways to avoid foreclosure, but one of the most prominent is through filing for Chapter 13 bankruptcy. This can sometimes be colloquially known as wage earner’s bankruptcy. It involves creating a repayment plan that you work together with other parties to create, and is signed off by your lender. 

While Chapter 13 bankruptcy is declared and underway, all forms of collection activity are forcibly stalled. This includes creditor harassment as well as threat of foreclosure. This allows you time to create your repayment plan.

You must then stick to it and pay your debts, or the activities that were stopped can resume. This is why it is of utmost importance to create a repayment plan that you can realistically follow. There is no wiggle room for mistakes; you must not have missed payments. Working closely with legal professionals can allow you to avoid getting in over your head with a repayment plan.

The possibility of foreclosure is certainly a scary one to be facing. However, there are ways that you can avoid it. Take a look at our web page on foreclosure alternatives, linked earlier. You can also speak to an experienced attorney to get a better idea of what your personal best options may be.