Being in serious debt can bring on intense feelings of fear and even panic episodes. Many times, the debt is a result of a problematic life event like a job loss, a divorce, a medical crisis or a business failure. Above all else, many consumers lose sleep at the persistent thought of losing their home to foreclosure.

If you are considering Chapter 7 or Chapter 13 as a means of debt relief, it is important to do your homework and understand the pros and cons of bankruptcy as it relates to your house and your mortgage debt. One of the main issues homeowners need to consider is foreclosure prevention, which begs certain questions like:

  • Can I afford my house after this significant life change?
  • How long do I expect to stay in my home?
  • Was my house ever affordable to begin with?
  • Is this a good time to consider a less expensive house?
  • How could a bankruptcy filing help with my mortgage situation?
  • Once my credit card, loan or medical debt is out of my life, will it be easy to make my mortgage payments?
  • In Tennessee, how long does the foreclosure process usually take?

Maybe you DON’T need to save your home

Bankruptcy can be used to discharge debts and/or restructure your payments. Assuming that happens, if you still couldn’t afford to make your house payments comfortably, you either need higher income or a less expensive house. It’s just basic math.

The fear of losing a home is real and painful, especially if you’re behind on your mortgage. Banks and other creditors know that, of course, and their collectors will use the fear against you to get you to make payments, even if you can’t afford them. With proper guidance, you don’t have to play that game.

Get the advice you need

Important financial issues can be hard to navigate. Bankruptcy may or may not be right for you and your family. In some circumstances, it can be used to stop the foreclosure process dead in its tracks.

Get the professional advice you need if you are at a crossroads with your mortgage and your other debts. Help is available right now.