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To get debt under control, homeowners may consider Chapter 13

Falling behind on mortgage payments is not uncommon. In some cases, people are able to catch up or negotiate with the lender for some extra time. However, if hardships cause a person in Tennessee to fall too far behind, or if the lender demands the full amount of missed payments to avoid foreclosure, this does not always mean the person will lose his or her home. There are other alternatives to get debt under control.

Loans on items like houses and cars are called secured debts because the item itself is the security that a person will repay the loan granted. If a person fails to pay back the loan for the house or car, that item may be claimed by the lender in place of the money owed. When a person is unable to make mortgage payments for an extended period of time and the lender threatens foreclosure, the homeowner may consider filing bankruptcy to keep from losing the home.

When some people think of bankruptcy, they believe it means not paying one's debts.  However, most people fully intend to pay what they owe, but circumstances beyond their control prevent them from doing so. In this case, they may consider filing for Chapter 13 bankruptcy. Under Chapter 13, a person's debts are restructured, not erased. Chapter 13 reorganizes a person's debts to make the payments more manageable so he or she can catch up.

A person in Tennessee who is in danger of losing his or her home because of missed mortgage payments may wish to explore the idea of filing Chapter 13 bankruptcy to get debt under control. Getting legal advice as soon as possible may provide the best opportunity for keeping one's home if it is in danger of foreclosure. Having one's payments restructured may also provide relief to someone who is struggling under the weight of unmanageable debt.

Source: yourhoustonnews.com, "Legal Line: What happens if you fall behind on your mortgage payments?", Melissa Lanier, July 29, 2016

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