Sound Legal Guidance Regarding Foreclosure And Bankruptcy

If you are struggling financially and unable to make mortgage payments, foreclosure may be imminent. Your lender may have sent you a notice of default and set a deadline by which missed mortgage payments must be made.

At Kaplan and Associates, Ltd., we work to help our Chicago-area clients who face foreclosure resolve the situation through a loan modification, a short sale or alternative agreement with a lender. If an agreement cannot be reached, many of those who face foreclosure consider filing bankruptcy.

Bankruptcy Can Help You Stop Foreclosure

If you face the forced sale of your home through foreclosure, bankruptcy is not the only option. However, it does enact an automatic stay on foreclosure proceedings. This provides you with additional time to stay in your home while you work with our knowledgeable lawyers to develop an effective solution. The bankruptcy stay remains in place until the bankruptcy is completed or until the lender obtains a court order to lift the stay.

In Chapter 7 bankruptcy, all of your secured debt is cleared, including second or third mortgages. Chapter 13 bankruptcy provides you the option to keep your home if you have the means to restructure the loan and repay it (including the amount that is in arrears) over the next five years.

Chapter 11 bankruptcy is primarily designed for businesses or investors. In Chapter 11, a business reorganizes its debt and may sell some of its assets under a plan that is approved by the bankruptcy court.

We Look At Every Option

Sometimes, bankruptcy in conjunction with foreclosure provides the smartest means to discharge debt and reset your financial foundation. In other situations, it may make sense to file bankruptcy to enact the automatic stay while you continue to pursue a loan modification, a short sale, a deed in lieu of foreclosure or another option.

The decisions you make at this critical point will have tax consequences, impact your long-term credit rating and affect whether or not you will be able to purchase another home in the near future. It is critical that you work with knowledgeable attorneys who will review every option with you and explain the short-term and long-term impact of your actions.

Get Answers To Your Questions During A Free Consultation

We invite you to schedule a free consultation in which we can answer your questions and recommend the best course of action. Call 312-379-9929, email us or use our online contact form to schedule a meeting. We work with clients throughout Greater Chicago and northern Illinois.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.