The purpose of bankruptcy is to provide assistance and an answer for those that are dealt with considerable debt. It may be that they cannot make most of their bills, or they may have a steady income but just need help to develop a plan that makes it possible for them to pay what they owe. One of the largest expenses that many people face has to do with the property they own. A mortgage on a home can be a high cost to take on and many people find themselves challenged with making monthly payments. So the question may be asked whether or not bankruptcy can do anything to prevent foreclosure. Since there are different types of bankruptcy, the question can be answered in different ways.
For individuals that are going through Chapter 7 bankruptcy, it is likely that many assets will be liquidated, and this can include a home in order to repay owed expenses. Chapter 7 can be used to slow down the process of foreclosure, but unless the outstanding debt is addressed, the process may ensue eventually. Chapter 13 is another option and this can be used to stop foreclosure. The same goes for Chapter 13 as Chapter 7 and the debt will need to be addressed in order for foreclosure to be prevented. Since this form of bankruptcy builds a payment plan, if a solid plan can be constructed and the individual is able to make the payments, then foreclosure may be stopped and the individual may be able to keep their home. There are many benefits that come along with bankruptcy and it wise to speak with a Chicago bankruptcy lawyer to understand the full scope of advantages. Call our firm for a free consultation and to learn what can be done in your situation.