What Happens If I Fall Behind on Bankruptcy Payments?
When a person falls behind on their bills, their first inclination is to stop making them. However, if they have no other choice, or if the consequences of not making payments to creditors become too severe, it is often necessary to look into filing for bankruptcy. What happens if I fall behind on my bankruptcy payments? Will my bankruptcy attorney in Greensboro NC, help me? Let’s look at this question and more.
You may be surprised to learn that if you fall behind on your bills when you file for bankruptcy protection, there will be very little you can do until your bankruptcy case is complete. Even then, there will likely be many decisions and options available to you, none of which will result in you becoming free from debts once and for all.
What happens if I fall behind on my payments?
You could attempt to refinance your mortgage and avoid making your mortgage payments altogether. This would bring you instant relief from your obligations, but it would leave you with a shorter mortgage term and higher interest rates. If you cannot refinance, a short sale can be arranged; however, you would incur taxes on the sale amount that is more than your outstanding mortgage balance. Both options are difficult to consider financially.
What happens if I need to extend or make other payments after I file bankruptcy? Depending upon your filed bankruptcy, you may be able to negotiate extension agreements with your creditors. You must research all of your options before you make any final decisions. Once again, if you are unable to come to terms with your creditors, a representative from a bankruptcy attorney may be able to work out repayment arrangements. Be prepared for the possibility that the bankruptcy attorney may have a high fee. They are accustomed to working on these kinds of cases, after all.
What happens if I am not able to repay my creditors? If you file for bankruptcy protection, most likely, your creditors will stop calling. You may be able to negotiate repayment terms with your creditors if a bankruptcy attorney represents you. They will be able to work out repayment arrangements, or you may have to file for bankruptcy protection again.
What happens if I need to make extra payments because my income has fallen behind? The bankruptcy laws vary. In some cases, late fees may not be discharged; however, they are dischargeable in many cases. Foreclosure proceedings can continue to sell your home, settle other claims against it, or apply for a deed instead of foreclosure. If you fall behind on your payments, you may be able to avoid foreclosure by making arrangements with your lender to make payments promptly.
Hiring a bankruptcy attorney Greensboro NC is important. To navigate through the immediate issues, it’s important to discuss the varying issues. Hire bankruptcy lawyers in Greensboro NC. Hire someone you can trust, Law Office of Mercedes O. Chut.