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What Happens to Your Delinquent Indiana Home Loan When the CARES Act Ends?

If you are one of the many Americans who have suffered financially as a result of the pandemic, you are most likely working through the effects that your strained economic situation has caused. Not being able to pay your mortgage and falling behind due to a decrease in income or the complete loss of income is something that has been widespread since COVID-19 hit the United States. A Marist poll shows that nearly one in five Americans are negatively affected by the pandemic and either suffered the loss of income or a reduction of their income.

It is extremely distressing and scary to face such uncertainty when it comes to your livelihood. One of the largest expenses most Americans take on is that of a home loan. Since the majority of people living in the country generally do not have the funds on hand to outright pay for a home, it is common practice to take out a home loan to purchase a house. 

Can Bankruptcy Help You Save Your Home?

The Mortgage Bankers Association reported that the nation is experiencing the largest number of delinquent Federal Housing Association home loans in over 40 years. The MBA found that in 2020, 16% of these loans are delinquent, which is the highest amount seen since 1979. This spike is understandable given the current climate.

Americans have been able to benefit from government aid in the form of payments made through the CARES Act. While helpful, this assistance is only temporary; when its provisions expire, individuals still in need will have to know what other options are available to them. The CARES Act only allows for a person struggling with their mortgage to put it in forbearance for one year. After that year ends, a financially devastated homeowner will still need to take action so they do not lose their home.

Filing for Chapter 13 bankruptcy in Indiana may be a viable option to help you save your home. If you are working and obtaining some form of consistent income, Chapter 13 bankruptcy can provide you with a practical solution for your circumstances. Under Chapter 13 bankruptcy, you have from three to five years to work your debt down and repay it. You can set up a workable payment plan that will address the principal amount of debt you hold without it being added to through additional interest or via late fees. Chapter 13 bankruptcy also gives you a grace period free from creditors harassing you through calls, letters, and threats of legal action.

Speak With a Talented Indiana Bankruptcy Attorney Today

When you work with Christopher L. Arrington, P.C., you will get the experienced and careful legal counsel you need to understand what your best options are to remedy your financial woes. Indiana Chapter 13 bankruptcy may not be the right choice for everyone, but for those who qualify, it could provide immense relief and the ability to catch up on past due payments. Call Christopher L. Arrington, P.C. today to schedule your free consultation with a knowledgeable Danville bankruptcy attorney at (317) 745-4494. chapter

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