For many people facing crushing debt, the thing that finally forces consideration of bankruptcy is the threat of foreclosure. Falling behind on credit card bills, car payments and even utility bills may feel like problems that can be managed, but once you’ve missed more than a few mortgage payments and you receive notification that your lender has begun the process of trying to sell your home, you know that you’re running out of options. Though you may want to consider talking to your lender about loan forbearance or a short sale, one of the most effective ways to prevent foreclosure is to file for bankruptcy. The Philadelphia bankruptcy attorneys at Jensen Bagnato, P.C. are experienced in helping those who need bankruptcy protection, and we can show you ways that you stay in your home.

Once you’ve received notification that the foreclosure process has begun, it is important that you act quickly. One of the advantages of filing for either Chapter 7 or Chapter 13 bankruptcy is that it sets in motion a legal procedure called the Automatic Stay. This immediately and automatically stops collection activities involving your foreclosure as well as for your other debts. It means you will stop receiving harassing phone calls and can catch your breath and possibly even save some money. Even if your house has been scheduled for a foreclosure sale, the automatic stay postpones this event in most cases.

Filing for Chapter 13 Bankruptcy

If you are facing foreclosure and file for Chapter 13 bankruptcy, it gives you the opportunity to structure a plan to repay your unpaid mortgage payments over a period that may be as long as five years, as long as you also make your current mortgage payments. This allows you to keep your home, and may offer the advantage of eliminating your debt on any second or third mortgage you may have.

Filing for Chapter 7 Bankruptcy

If you do not have enough income to qualify for a Chapter 13 bankruptcy, then filing for Chapter 7 will generally allow you to postpone the need to leave your home, as well as allow you to begin saving money again. Chapter 7 bankruptcy gives you the opportunity to remain in your home without having to pay your mortgage or other debts while the filing is being processed, and usually for a few months after. This not only gives you the opportunity to make plans for your future, but to make a fresh start without many of your debts.

As a result of the housing crisis, government agencies have asked the banking and housing industry to show leniency and creativity in helping consumers facing foreclosure to stay in their homes. The experienced bankruptcy attorneys at Jensen Bagnato, P.C. can help you to discover and review the various options that are available to you and to help you determine which is the best for your situation. Call us today for experienced, dependable legal help.

The bankruptcy attorneys at Jensen Bagnato, P.C. located in downtown Philadelphia, routinely help distraught borrowers and deals directly with large mortgage banks such as:

• Bank of America
• Wells Fargo
• Chase
• PNC
• Union Bank
• U.S. Bank
• Credit Unions

These are just some of the financial institutions they have experience with. Call (215) 546-4700 for a free consultation and they will explain all debt relief options to you so that you can choose the right one for you. Do not wait. Call today and get the debt relief you need now.

“We are a debt relief agency. We help people file for relief under the U.S. Bankruptcy Code.”