A common misconception is that you will lose your home if you file for Bankruptcy. In fact, many people use Bankruptcy to protect their most valuable asset, their home, and stop the foreclosure process.

The foreclosure process in South Carolina is a state court judicial procedure initiated by your mortgage company when you fall behind in your monthly mortgage payments. This is the process by which your mortgage company takes your home if you fail to make your payments. First, you will receive a Summons and Complaint from your lender, followed by a hearing where a sale date will be set and ultimately an auction at the courthouse on the day of the sale. Bankruptcy can stop a foreclosure and provide a homeowner a safe mechanism to keep their residence.

The most important thing with foreclosure is that you must file a bankruptcy case before the property is sold at the foreclosure sale. After the sale is concluded, the former homeowner is only a squatter with no more rights to the property. Before the sale is final the homeowner can file a bankruptcy case under Chapter 13 reorganization to keep their home.

Under Chapter 13, the homeowner may choose to resume mortgage payments and pay back the missed payments over several years or we can seek a loan modification to alter the terms of the loan with the lender’s permission and agreement. We will work together to determine the best strategy based on your circumstances and budget.

Please remember that this is a very basic description of bankruptcy law and not legal advice. We can discuss your situation in detail during a free, confidential consultation with an attorney who will explain how bankruptcy law fits your specific situation. We are a debt relief agency.