Smyrna Foreclosure Lawyer Helps People Keep Their Homes

Tennessee law firm guides owners in stopping foreclosure through bankruptcy

You’ve worked hard to own a home and the prospect of losing it due to mortgage foreclosure is a dismal one. If you are a Tennessee homeowner in danger of being foreclosed on because you cannot make your mortgage payments, filing for bankruptcy may be the best solution. At Gasser Law, PLLC, in Smyrna, we will determine if you qualify for this form of legal relief and will represent you throughout the bankruptcy process, taking all steps necessary to stop a foreclosure sale and help you keep your home.

Stopping foreclosure by filing for bankruptcy

If you’ve been notified by your lender that your home is in danger of foreclosure, you need to take quick action. When you file for bankruptcy, an automatic stay goes into effect that stops actions by creditors to enforce debt collection, including foreclosure proceedings. This is the case even if you file for bankruptcy the day before a foreclosure sale. Our attorney can assist you with filing your bankruptcy petition before the sale date in order to make sure your foreclosure is stopped.

Is filing Chapter 7 bankruptcy beneficial in foreclosure?

A Chapter 7 bankruptcy filing will halt the foreclosure until the bankruptcy proceedings are complete, unless the lender is able to have the stay lifted by showing good cause. The automatic stay also pauses your obligation to make mortgage payments. The mortgage itself remains in effect, so the bank can resume collection activity — including foreclosure — once the stay ends. But the extra time you gain from stopping the foreclosure sale may allow you to work out another solution with your lender. Our bankruptcy and foreclosure attorney can help you explore that path and other options for potentially keeping your home.  

How can Chapter 13 bankruptcy help me keep my house?

Chapter 13 bankruptcy lasts for either three or five years while you carry out a court-approved plan for repaying part of your outstanding debts. Mortgage arrears, which are your missed loan payments, are included in the repayment plan. Your current mortgage payments are not included, but your home lender cannot foreclose as long as you stay current on those payments. To qualify for this type of bankruptcy and save your home from foreclosure, you’ll have to show that you have sufficient income to keep up with the repayment plan. We can help you in structuring your proposed plan for repaying your mortgage arrears and other debts and guide you throughout the Chapter 13 bankruptcy process.  

Using the Tennessee Homestead Exemption to full advantage

Federal and state laws allow you to keep a substantial amount of your property, including some of the equity in your home, when you file for bankruptcy. The Tennessee Homestead Exemption applies that protection to main residences. In Chapter 7, it may prevent the forced sale of a home or, if your home is sold, may allow you to keep the exempted equity instead of that money going to your creditors. In Chapter 13, the homestead exemption could reduce the amount of money you owe and thus lower how much you must pay in your repayment plan each month. We will make maximum use of the homestead exemption in your foreclosure case.  

Contact a knowledgeable Smyrna foreclosure attorney to arrange a free consultation

At Gasser Law, PLLC, in Smyrna, we are experienced in helping Tennessee homeowners avoid foreclosure. We will counsel you about all potential options for keeping your home, including having your mortgage restructured during bankruptcy proceedings. To schedule a free consultation, call our firm at 615-267-0588 or contact us online.