Your mortgage lender will send you letters if you fall behind on your payments. So, what will these letters say? They'll let you know that you have late fees and past-due payments. Additionally, they'll reveal your lender's plans to initiate a foreclosure on your property. Losing a home to foreclosure is devastating, but there might be something you can do to stop it. Here is a guide to help you learn how bankruptcy might stop you from losing your home.

Talk to a bankruptcy lawyer

First, you might want to schedule an appointment with a bankruptcy lawyer, and you shouldn't hesitate. If your lender plans to file foreclosure documents, you'll need to move quickly. You'll need to prepare for this meeting beforehand by gathering your financial information. The lawyer will want to see your income for the last six months. They might also ask to see proof of your debts. Additionally, you should bring all the documents relating to your mortgage. A bankruptcy lawyer can give you better advice and options if they know your entire financial situation.

File for Chapter 13 bankruptcy

If you meet the criteria for Chapter 13 bankruptcy, the lawyer might recommend using this branch to stop the foreclosure. However, this branch also offers other benefits for your finances. So, what does Chapter 13 do? Chapter 13 bankruptcy isn't always the preferred branch of bankruptcy, but it's the only branch that stops foreclosures from continuing.

When you file for Chapter 13, you should understand two main things. First, it stops all your creditors from collecting your debts, including your mortgage lender. In fact, your creditors won't be able to ask you for any money while you're involved in Chapter 13 bankruptcy proceedings.

Secondly, this branch provides a repayment plan for your debts, including your mortgage loan. As a result, you have an affordable way to catch up on every debt you owe. However, you'll be tied to this repayment plan for up to five years, and it won't leave you with a lot of discretionary income. But it will leave you with enough money to pay your normal expenses, such as gas and groceries.

Learn more about bankruptcy

After reading this, you might feel like bankruptcy could be the best route for you. If you're interested in learning more about it, you can contact a bankruptcy law firm such as Supple Law Office, PLLC to schedule an appointment to discuss your finances and options for your home.