Most people assume – erroneously – that life after a Louisville bankruptcy is going to be bleak. They picture losing their vehicle, their property and being forced from their homes.
In fact, our Louisville bankruptcy attorneys know that there are situations in which filing for a bankruptcy can actually improve your chances of hanging onto your home.
In some cases, you may even be able to strip second or third mortgages, leaving you with your home and manageable payments. The potential loss of a home due to foreclosure is still a possibility that thousands of Kentucky homeowners are grappling with, despite the improved unemployment numbers and incrementally expanding economy.
By no means is Louisville bankruptcy a cure-all, but it can go a very long way in helping you to start fresh after you’ve been buried by unmanageable debt.
When you first file for bankruptcy, it immediately halts creditors from being allowed to harass you. What it also does is buy you some more time. It can force a mortgage servicer or lender to negotiate with you, and it may allow you to purge a great deal of your unsecured debt.
Speaking with a Louisville bankruptcy attorney to comb through all your options is the critical first step.
SNL Financial reports that the largest banking institutions in the country as of last
September had huge numbers of residential loans in the middle of a foreclosure.
In fact, Bank of America’s mortgage loans in foreclosure topped $23 billion – not including the $90.6 billion in loans serviced for others.
Next look at Citigroup, which had mortgage loans in foreclosure that totaled about $7 billion, with another $10 billion in others-serviced loans.
Numbers from Wells Fargo, which held mortgage loans in foreclosure that totaled more than $18 billion, and loans serviced for others stood at roughly $40 billion.
And finally, JPMorgan Chase held residential home mortgage loans that had slipped into foreclosure totaling about $30 billion, plus another $55 billion for those loans they had serviced for others.
What all that basically means is that there is incentive for these financial institutions to want to work with you. That doesn’t mean you should assume you can take them on yourself. These institutions have deep pockets and have become widely known for deceptive practices.
The bottom line, though, is that now more than ever, a Louisville bankruptcy can mean you can save your home, rather than be forced from it.
One thing to consider before filing is to look at whether all of your major assets are covered by Kentucky Bankruptcy Exemption Laws. An experienced Louisville bankruptcy attorney can help you sort through the details.
Just know that a Chapter 13 bankruptcy in Louisville can help you keep your home, and generally takes about three to five years to complete, but in the end, you will be considered current on your mortgage balance and free to continue living your life – in your home – without the burden of insurmountable debt.
If you need to speak to a Kentucky bankruptcy attorney or Louisville foreclosure defense firm, contact the Bankruptcy Law Center at 866-270-4495 for a free and confidential consultation to discuss your rights.
Go bankrupt, keep your home?, By Philip van Doorn, MainStreet, MSN Money