If you've used the last couple years to turn your financial lemons into lemonade, you're not alone.
Despite hard economic times, Americans have managed to decrease credit card debt to the lowest level in 8 years and more than 13% less than just a year ago. Not only that, but more folks are making their payments on time. For some of us, its solid proof that all that scrimping and saving and budgeting can really pay off, say Chicago bankruptcy attorneys. For others, though, it might be a nice symptom of a not-so-nice cause.
Unfortunately, some of us have more money to lower debt because we're opting to forgo a mortgage payment so we can afford to pay credit card bills. On the one hand, less debt is always a good thing because it will eventually mean you'll be able to keep more of your paycheck. The sooner you pay off your balance, the fewer months you'll be required to pay your credit card company - and the less interest you'll owe when you do.
But on the other hand, the benefits you gain from lowering debt won't come soon enough for you to save your house. While your lender might not contact you for the first few missed payments, you'll eventually be required to make back payments, plus late fees and other penalties, in order to keep your house. If you can't, you'll receive a foreclosure notice.
It seems that you can't have it both ways - or can you? When you file for Chapter 13 bankruptcy, a legal action called the automatic stay is enacted. The stay protects your house from foreclosure while you settle on a court-approved affordable payment plan to lower your debt. Interested in getting back your financial security while maintaining the security of a roof over your head? Contact our Chicago bankruptcy lawyers today for a free personalized debt analysis.
