Foreclosure Rates Hold Steady, Despite Economic Improvements Elsewhere

July 27, 2012 (Press-News.org) Foreclosure Rates Hold Steady, Despite Economic Improvements Elsewhere

One in every 495 Ohio homes received a foreclosure filing in May 2012, which was well above the national average of 1 in 639, according to RealtyTrac.com. Despite modest improvements in the mortgage default rate over the past few months, a recent report from the Mortgage Bankers Association shows foreclosures across the U.S. are holding steady. In the first quarter of 2012, about 4.4 percent of U.S. homes were in some stage of foreclosure, the same as the previous quarter and only a slight improvement from the 4.5 percent foreclosure rate a year earlier.

Stopping Foreclosure With Chapter 13 Bankruptcy

If you are behind on your mortgage and at risk of losing your home to foreclosure, Chapter 13 bankruptcy may offer a way to keep your home and get out of debt.

Chapter 13 bankruptcy, which is often referred to as reorganization bankruptcy, involves restructuring your debts and paying them off according to a court-approved payment plan over a period of 3 to 5 years. The payment plan focuses primarily on paying off certain "high priority" debts such as a home mortgage, back taxes or delinquent child support payments. At the end of the plan, any remaining eligible debts will be discharged.

One of the biggest advantages of Chapter 13 bankruptcy is that it does not require you to surrender your assets in order to get out of debt, as is usually required in Chapter 7 liquidation bankruptcy. This means that you can keep your home and will not be required to forfeit your car or other assets. In addition, filing for Chapter 13 bankruptcy triggers an "automatic stay," which automatically stops or prevents foreclosure and other collections actions that may be pending against you or your property.

Consult With a Bankruptcy Lawyer

Despite its advantages, Chapter 13 bankruptcy is not right for everyone. For instance, in order to qualify for Chapter 13 bankruptcy, you must be able to show that you have sufficient income to make the payments required by your plan. In addition, you may be ineligible if you have more than $360,475 in unsecured debts like medical bills or credit card debt, or if you have more than $1,081,400 in secured debts like auto loans or home mortgages.

To learn more about Chapter 13 bankruptcy and whether it could work for you, discuss your situation with an experienced bankruptcy lawyer.

Article provided by Cope Law Offices, LLC
Visit us at http://www.copelawoffices.com