You’re facing foreclosure in Las Vegas. You’re not sure how everything works or will proceed going forward. Should you file for bankruptcy? Will it help in some way?
The answer is: It depends.
- If you don’t have enough money to pay off your mortgage, then filing for bankruptcy is the only way to prevent foreclosure. Of course, that doesn’t mean bankruptcy will save your home in every situation.
- If you’re not worried about saving your home but you have a second mortgage and want to relieve yourself of that debt burden, then Chapter 7 may be the right path for you. While Chapter 7 can not always prevent foreclosure since a mortgage is a form of secured debt, it can be used to convert a second or third mortgage into unsecured debt. And that debt can be wiped away in a Chapter 7 bankruptcy filing.
- If saving your home is important to you, then Chapter 13 may be the way to go. Under a Chapter 13 bankruptcy, you work out a payment plan over 3 to 5 years. If you have sufficient income or assets that you can work out a mortgage payment plan and stay current on your mortgage, then you can use Chapter 13 to help you stay in your home.
If you’re dealing with foreclosure in Las Vegas, you can always contact an experienced Freedom Law Firm foreclosure and bankruptcy attorney for a free initial conversation or consultation. You can reach us at 702-745-8088.