Many business owners are also homeowners, which means that everything could be on the line after an individual has decided to move forward with Chapter 7 bankruptcy. Few people try to go into foreclosure every year and the process is typically involuntary. When a business experiences excessive debt and bill obligations that somebody is unable to keep up with, home foreclosure can occur very quickly, putting everything on the line for an individual who is attempting to get back on track with their business.
How the Automatic Stay Can Help with Foreclosure
When a business owner decides to move forward with a Chapter 7 bankruptcy, they might be concerned about foreclosure on their homes. Luckily, an aspect known as an ‘automatic stay’ can help put a halt on proceedings that can put a person’s home at risk. All foreclosure proceedings must stop when the automatic stay is enacted, as it acts as a bar against creditors who attempt to collect debts from business owners.
Chapter 7 bankruptcy will not permanently put an end to foreclosure proceedings, but the good news is that it typically gives business owners more time, which might be all that they need. Chapter 7 is a way to delay a foreclosure, which, for some, might be all the time that they need to get finances in order and get back on track. However, if you believe that foreclosure might be inevitable no matter what you do, Chapter 13 might be a better way to move forward. Chapter 13 bankruptcy can help you catch up on back due mortgage payments through the use of a repayment plan, which can also stave off the possibility of going through a foreclosure.
Why You Should Never Wait to File for Bankruptcy
When foreclosure proceedings have begun, you have very little time to act on these matters. For instance, if you wait until just days before your foreclosure proceedings to speak with a bankruptcy attorney for the first time, you will not be able to get the process started before it is time to attend your scheduled hearing, which could move the foreclosure process forward and cause you to lose your home. However, if foreclosure is impending and you are just hearing about it for the first time, that is the best time to visit your attorney so that you can save both your business and your home depending on your circumstances.
Speaking with a Skilled Bankruptcy Attorney
For some, bankruptcy is one of the best decisions for moving forward with many aspects. However, bankruptcy can be a complex process that is not for everyone, which is why it is essential to speak with a Texas bankruptcy attorney at M.J. Watson & Associates, who has handled Chapter 7 bankruptcy claims in the past. If you wonder how you can move forward with bankruptcy in your desperate time of need, contact a law firm who has aided many clients during these difficult aspects of their lives. We are waiting to hear from you for the help you deserve at 817-877-2861.