Bankruptcy is a powerful tool that can be used to potentially save your home from foreclosure.
Chapter 13 bankruptcy is actually designed to stop foreclosure and may provide you with the protection and relief you need to stay in your home while you catch up on your debts.
How could bankruptcy help you? Get the facts by talking to a local attorney today. Set up a no-obligation consultation today by filling out the quick case review form below.
Home foreclosure is the process by which the bank or mortgage company that has a lien on a piece of real property takes that property back because the property owner hasn't complied with the terms of the mortgage agreement. Most often, this is because the borrower has fallen behind on payments.
The exact foreclosure process differs somewhat from state to state, but the real problems usually begin when mortgage payments are 16 days past due.
Although it is still possible to work out a repayment plan with the lender at that point, many homeowners do not. This may be because they're still in the midst of the financial difficulties that caused the past-payment, or simply because they're hoping things will get better with the next paycheck or the next month or some other change in circumstances.
Unfortunately, many people delay too long while hoping for things to get better. If a homeowner has significant equity - usually at least 15 - 25 percent - in the home and is less than 90 days past due, there may be a variety of possible ways to stop foreclosure, including refinancing.
However, once a loan is more than 90 days past due, or if the homeowner doesn't have significant equity-which is often the case due to creative financing options-refinancing can be difficult.
In those cases, Chapter 13 bankruptcy may still allow the homeowner to stop foreclosure.
Many people file for Chapter 13 bankruptcy specifically to stop foreclosure.
In most cases, an automatic stay is entered as soon as a Chapter 13 bankruptcy petition is filed. The automatic stay should temporarily stop foreclosure, along with all other collection action, regardless of the stage of the foreclosure proceedings.
With the automatic stay in place, the debtor and his attorney have the breathing room to work out a Chapter 13 repayment plan.
Chapter 13 bankruptcy is a reorganization of debts that allows a debtor to make payments to creditors over a period of three to five years. Chapter 13 is sometimes called a "wage earner's bankruptcy" because it requires that the debtor have a steady source of income for the duration of the repayment plan.
Chapter 13 bankruptcy is an option for those who do not Chapter 7 bankruptcy due to the means test. However, many people choose Chapter 13 when filing bankruptcy because it may allow debtors to keep their home, car, and other types of secured debts.
Within 15 days after filing a Chapter 13 bankruptcy petition, the debtor must file a proposed plan, setting forth his income, allowable living expenses, and proposed payments to the trustee for the benefit of creditors. Current payments must be kept current after the Chapter 13 bankruptcy petition is filed.
Homeowners must make all mortgage payments that are due during the Chapter 13 bankruptcy repayment plan, and failure to make current payments on time may mean that the bankruptcy court lifts the automatic stay and allows the mortgage company to resume foreclosure proceedings.
Assuming that all plan payments are made in a timely manner, the homeowner may catch up the past due mortgage payments over the 3-5 years of the repayment plan, or may discover that he is eligible to refinance the property after a period of repayment.
Generally, a homeowner can file a Chapter 13 bankruptcy to stop a mortgage foreclosure if the homeowner:
A local bankruptcy lawyer in your area can help you assess whether Chapter 13 bankruptcy is the right option for you, and can help you structure a repayment plan that works for you and your creditors.
Get started by filling out the below form or calling 877-349-1309 and we'll help you get in contact with a sponsoring bankruptcy attorney.Speak to a Bankruptcy Lawyer Today
PAID ATTORNEY ADVERTISEMENT: THIS WEB SITE IS A GROUP ADVERTISEMENT AND THE PARTICIPATING ATTORNEYS ARE INCLUDED BECAUSE THEY PAY AN ADVERTISING FEE. It is not a lawyer referral service or prepaid legal services plan. Total Bankruptcy is not a law firm. Your request for contact will be forwarded to the local lawyer who has paid to advertise in the ZIP code you provide. Total Bankruptcy does not endorse or recommend any lawyer or law firm who participates in the network nor does it analyze a person's legal situation when determining which participating lawyers receive a person's inquiry. It does not make any representation and has not made any judgment as to the qualifications, expertise or credentials of any participating lawyer. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers. The information contained herein is not legal advice. Any information you submit to Total Bankruptcy does not create an attorney-client relationship and may not be protected by attorney-client privilege. Do not use the form to submit confidential, time-sensitive, or privileged information. All photos are of models and do not depict clients. All case evaluations are performed by participating attorneys. To see the attorney in your area who is responsible for this advertisement, please click here, or call 866-200-8052.
FLORIDA ONLY: Total Bankruptcy is considered a lawyer referral service in the state of Florida under the Florida Rules of Professional Conduct. By all other standards, Total Bankruptcy is a group advertisement and not a lawyer referral service.
If you live in Mississippi, Missouri, New York or Wyoming, please click here for additional information.
By an Act of Congress and the President of the United States, we are a federal Debt Relief Agency. Attorneys and/or law firms promoted through this Web site are also federally designated Debt Relief Agencies. They help people file for relief under the U.S. Bankruptcy Code. Disclosures Required Under the U.S. Bankruptcy Code.