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Helping good people through bad times

Foreclosures down but many may still face an uncertain future

It is true that bankruptcy can provide debt relief, but it may also be able to help those facing the fear of foreclosure. According to a recent report, completed foreclosures have dropped 34 percent over the past year. While this number represents a decrease over the previous year, it still represents 939,000 homes in some stage of the foreclosure process. At the end of the summer, 2.1 million homes were seriously delinquent on mortgage loan payments. While fewer homes are entering the foreclosure process today than are exiting it, there are still homeowners in Tennessee and throughout the country struggling with fears of foreclosure.

For those still facing financial challenges and seeking to stop foreclosure and reduce debt, Chapter 13 bankruptcy may be an option to consider. Chapter 13 bankruptcy can help with foreclosure by creating a temporary automatic stay of all collection activities against the filing party, during which time creditors cannot pursue any collection activities. This can also help stop creditor harassment and provide peace of mind to the filing party.

For those who qualify, Chapter 13 bankruptcy allows a filing party to reorganize debt into manageable payments that can be repaid over a period of time. In addition to reducing debt, Chapter 13 bankruptcy may be able to help a filing party concerned with keeping a family home stop foreclosure. The temporary stay of collection activities can halt any foreclosure proceedings until the filing party's repayment plan is approved by the court. Once the repayment plan is approved, the filing party may be allowed to repay missed payments over time.

Source:, "Completed foreclosures fall 34%," Brena Swanson, Oct. 8, 2013

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Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-624-4002
Toll Free: 800-257-7594
Fax: 423-624-0509
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