What is bankruptcy and how does it affect my mortgage with Nationstar Mortgage?

Bankruptcy is a legal process where individuals or businesses declare that they cannot repay their debts. It allows them to seek relief from their creditors and restructure their financial situation. When you file for bankruptcy while having a mortgage with Nationstar Mortgage, it will influence the terms of your mortgage agreement. Nationstar Mortgage, as your creditor, will usually be notified by the bankruptcy court about your bankruptcy filing. This triggers an automatic stay that temporarily stops the enforcement of debt collection activities. Depending on the type of bankruptcy you file, you may have different options to address your mortgage. Chapter 7 bankruptcy could lead to the liquidation of assets to repay debts, potentially resulting in the loss of your home. Chapter 13 bankruptcy allows you to create a repayment plan over a few years, including your mortgage payments, to catch up on arrearages and potentially keep your home. It is crucial to consult with a bankruptcy attorney to understand the specific implications and possibilities for your mortgage during bankruptcy.