No Louisiana resident wants to wind up in a situation where the loss of a home is a real possibility. However, many people face foreclosure, and it can wreak havoc on the stability of their livelihood. They may also have to contend with a great deal of mental distress as they wonder what they can do to stop the proceedings against them. In many cases, Chapter 13 bankruptcy may be able to help.
With Chapter 13, a person needs to have a steady income that would allow him or her to repay debts over time with the help of a repayment plan. When it comes to foreclosure and bankruptcy, the filing of a bankruptcy petition enacts an automatic stay. This means that creditors must stop all collection actions against the person filing, which also means foreclosure proceedings must stop.
Of course, there are many facets to this type of predicament. While bankruptcy may be able to help, it may still benefit individuals facing this type of scenario to understand the foreclosure process. It may give parties the opportunity to determine the best time to act and hopefully save their homes.
The idea of potentially losing a home can be frightening, and the thought of filing for bankruptcy may not seem much better. However, Chapter 13 can be a viable way for qualifying parties to keep their property while also addressing their outstanding debts. The process can take years, but in the end, Louisiana residents may come out of the proceedings in a better place financially.