Homeowners in New Jersey are more seriously delinquent than homeowners in Connecticut and New York, according to a Wall Street Journal online article. Reportedly, the number of New Jersey loans in foreclosure reached 6.28%, while the number of seriously delinquent loans reached 10.54%. Comparatively speaking, the U.S. average during the same time period stood at 4.57% and 9.11%, respectively. New Jersey ranks behind only Florida and Nevada in terms of the number of loans in foreclosure.
While foreclosure seems like a hopeless process, there are options for homeowners who want to save their house. Many people fail to realize that filing for bankruptcy in New Jersey can actually allow an individual to remain in their home, provided they choose to file chapter 13 bankruptcy protection rather than chapter 7. While chapter 7 bankruptcy protection may, under some circumstances, allow an individual to save their home, it does not allow an individual to save a house once that house has gone into foreclosure. However, New Jersey chapter 13 bankruptcy protection does allow one to save their home once it goes into foreclosure.
Per your chapter 13 bankruptcy plan, a monthly payment will be paid each month to a trustee. These payments may last anywhere from 36-60 months. This payment may include unsecured sources of debt, such as credit card bills and hospital fees, in addition to the pre filing mortgage arrears. An individual who can make the monthly bankruptcy, as well as their monthly mortgage payments, will be allowed to remain in their house. At the end of the plan payments, their past mortgage payments will be considered settled, cured and resolved.
At the Law Offices of Robert Manchel, our experienced New Jersey bankruptcy attorneys will guide you every step of the way during your bankruptcy protection proceedings. For more information about how chapter 13 bankruptcy can save your home from foreclosure, please contact our office today at 866-503-5655.