chapter 13 bankruptcy protection

The economy may be on the road to recovery, but the progress it’s making is too little for the average person to actually feel in their daily life. Credit card debt, variable mortgage rates, and the everyday costs of living are becoming more and more difficult for people to handle. Consequently, many homeowners are now unable to make their mortgage payments, resulting in those homes going into foreclosure.

According to a Los Angeles Times article, many investors and private equity funds are now cashing in on foreclosed properties, purchasing them at auction so that they can turn right around and sell them for a quick profit. Though home flippers are nothing new, the method of purchasing foreclosed homes (which often times still house the home owners) as an investment opportunity during a downtrodden economy is a practice that is catching on across the country. Professional investors, in particular, are venturing into the flip business, which was more recently occupied by amateur investors looking to make a profit after a few months of remodeling and staging.

Allowing one’s home to go into foreclosure is the absolute last option that a New Jersey homeowner would ever want. Fortunately, when a family’s home is in danger of entering into foreclosure, and mortgage companies are unwilling to help, there are options that can help save the family home. In order to take advantage of the best option available, a home owner facing foreclosure in New Jersey should always consult an experienced New Jersey foreclosure attorney who will ensure that everything that can be done to save the house will be done.

In New Jersey, filing for Chapter 13 bankruptcy protection may allow a home owner to continue living in their house after their mortgage has been reinstated. Although a Chapter 7 bankruptcy will not stop a foreclosure action, the filing will permit the elimination of debt and permit the homeowner an opportunity to negotiate a loan modification. In any event, the skilled New Jersey bankruptcy attorneys at the Law Offices of Robert Manchel will help you make the best decisions for your particular financial situation. If you’d like more information about your rights when filing for bankruptcy as well as the potential benefits of New Jersey credit counseling, please call 866-503-5655.

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You hear about it on the news and read about it in the papers. Everyday across the country, more and more people are receiving notices of foreclosure in their mailboxes, and more and more people are finding themselves packing up their belongings and surrendering their homes to banks and mortgage companies. According to the New York radio station WNYC, the number of foreclosures was on the rise in July, but is down overall compared to 2009 figures. The online news article points out specifically that the number of foreclosures filed in New Jersey declined nearly 22% in July, while annual figures declined overall by 7%.

Reportedly, the number of homeowners in the U.S. who received some sort of foreclosure filing, either in the form of a default notice, home auction announcement, or bank repossession declaration, rose 4% from the time period of June to July. This translates to a little more than one out of every 400 households across the country. And while these numbers are 10% lower than similar figures recorded the year prior, the number of homes repossessed by banks unfortunately rose to almost record levels.

Homeowners who are in danger of losing their house to foreclosure have options to save their property. Loan modifications are one of the more common options utilized by individuals on the fringe of foreclosure, but this method doesn’t always work out for the best. For others, filing for chapter 13 bankruptcy protection can also save a family home, in addition to offering relief from other financial hardships. Unlike chapter 7 bankruptcy in New Jersey, chapter 13 bankruptcy allows an individual to stop the foreclosure process.

The details and differences surrounding chapter 7 and chapter 13 bankruptcy can be relatively complicated, but generally speaking, individuals who do not qualify for chapter 7 often file for chapter 13 bankruptcy protection. However, only chapter 13 will save a home from foreclosure. For more information about your options in filing for bankruptcy, please contact the New Jersey bankruptcy attorneys at the Law Offices of Robert Manchel. Call us today at 866-503-5655.

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