Throughout the state, people are fighting to keep their homes.
Circumstances that are way beyond any person’s control can cause economic hardship. Loss of employment, medical emergencies, death of a family member, or divorce can put a person into a financial debt spiral. One crisis, one mistake, and even the most fiscally responsible person could be at risk.
Falling behind on mortgage payments is stressful for every homeowner. When mounting debt, including mortgage payments, becomes cumbersome, it can be easy to miss payments here and there. When foreclosure looms, many homeowners may not know where to turn to save their homes.
The primary purpose of bankruptcy law is to provide a debtor with a “fresh start” through which some debts can be paid, restructured, or discharged. While considering bankruptcy, it’s natural for many people to feel anxious about what’s involved in the process of filing a case. Most debtors are looking for relief from their current financial stresses, including past due mortgage payments, while also trying to figure out how to keep their property.
If you are facing foreclosure due to overwhelming debt, you probably feel like you are stuck, like you have no options or that there is nothing you can do. Our Colorado Bankruptcy and Foreclosure attorneys are here to help. We know that you need a hand-up to conquer your debt, not a handout, and a helping hand is exactly what we offer.
Contact our firm today for a no-cost case consultation. We are a debt relief agency and help people obtain a financial reboot by filing for personal bankruptcy under Chapter 7 and Chapter 13 of the U.S. Bankruptcy Code. We can also help you explore other alternatives.
One of the first questions prospective clients often ask during the bankruptcy process is whether or not they’ll lose their home if they file for bankruptcy. It would be unfair to give a definitive answer on this website because each case has unique circumstances, therefore the answer is different for every Coloradan pursuing bankruptcy.
There are two ways a prospective bankruptcy filer may “lose” their home if they chose to file for bankruptcy, through surrender or foreclosure. Many people may assume that these two terms are interchangeable, however, that is untrue. There is an important distinction between surrendering your home or having your home foreclosed upon, especially when it comes to filing for bankruptcy.
When you sign loan documents to finance the purchase of your home, you agree that your lender can take your home from you in the event you do not comply with the terms of the loan, the most important of which is making monthly payments of principal and interest. If you fall behind on your mortgage, your lender forecloses according to your agreement and becomes the new owner of your house. Simply put, when your home is foreclosed upon, the lender takes the home from you due to non-payment.
Surrender, also commonly referred to as voluntary release, or a deed in lieu, is sometimes an option for homeowners who are in danger of being foreclosed upon. This means
that the homeowner will surrender title and possession of the property
voluntarily, rather than requiring the lender to go through the full
foreclosure process.
If you’re behind on your mortgage payments and wish to discuss whether voluntary surrender or foreclosure may be an option, we suggest you contact our Colorado bankruptcy attorneys for a free case evaluation.
While we provide some basic information about foreclosure and bankruptcy on this website, every case is unique, and there may be options available to you that we haven’t listed here. Don’t hesitate to reach out to us to help you navigate the complex laws surrounding mortgages, foreclosures, and surrenders. We service the entirety of Colorado, including:
Although Chapter 7 bankruptcy can temporarily stop foreclosure proceedings, its ability to ultimately save your home from foreclosure is limited. If you want to permanently stop foreclosure, you’ll need to get current on your payments by the end of your Chapter 7 bankruptcy. However, you can still temporarily halt foreclosure proceedings if you file for bankruptcy thanks to the automatic stay, and this can sometimes give you the time that you need to get the money to get caught up with your mortgage.
It’s important to work with a Colorado bankruptcy attorney who can help you find out whether you will be able to keep your home before filing for Chapter 7 bankruptcy because you can’t cancel the bankruptcy proceedings once they’ve started.
Chapter 13 bankruptcy, also known as reorganization bankruptcy, is usually the best option for Coloradans looking to keep their home from foreclosure. This is because filing Chapter 13 bankruptcy allows you to include your past due mortgage payments in your bankruptcy plan to avoid foreclosure.
With Chapter 13 bankruptcy, all of your debts are combined into one manageable payment meant to help you pay down your outstanding debt over the course of several years.
Chapter 13 may be a good option for Coloradans who have a stable income, as you will be required to maintain the agreed-upon payments for between three to five years. However, it’s worth noting that if you lose your job or experience adverse financial circumstances that prevent you from staying current on your payments, you can ask the bankruptcy court to modify your plan and reduce the payment amount or convert your case to Chapter 7.
If you are facing foreclosure, the thought of losing your home is understandably frightening.
Whether you choose not to fight foreclosure or file for bankruptcy is up to you. The most important thing to realize is that you don’t have to make that decision alone. An experienced Colorado Bankruptcy and Foreclosure lawyer can help review your financial situation with you and provide honest legal advice about whether bankruptcy can help you stay in your home as well as provide relief from your unsecured debts and a fresh start.
For more information on foreclosure and bankruptcy, visit
There is no way to hide an inability to pay your mortgage, and in fact, dodging your loan holder will only make the situation worse. If you think you are at risk of foreclosure and are considering bankruptcy as a debt relief option, contact our Colorado bankruptcy attorneys today.
We offer a no-cost case evaluation for each prospective client. During your free consultation, you can provide us with the details of your financial situation, and we can offer debt relief options tailored to your unique circumstances. If saving your home from foreclosure has become a priority, don’t hesitate. Reach out today.
