Filing Bankruptcy To Stop Foreclosure
Are you in danger of losing your home in a foreclosure sale? Chapter 13 bankruptcy may allow you to stop foreclosure and give you an opportunity to repay your missed payments in an affordable payment plan. Filing bankruptcy puts an automatic stay into effect that stops all attempts to collect debt incurred before the filing date. This means that as long as your bankruptcy case is filed before the foreclosure sale takes place then the mortgage lender cannot sell your house.
Chapter 13 Bankruptcy Can Stop Foreclosure of Your Home
After filing bankruptcy you submit a plan to repay your debts. These plans are usually for three to five years. The mortgage arrears are paid in the plan as well as any other debts you choose to pay. After filing your case you are required to make your regular monthly mortgage payments and make the plan payment to the Chapter 13 Trustee. At the end of the bankruptcy case, assuming you have made all payments due under the plan, you should be current on your mortgage payments and no longer in danger of losing your home to forelcosure.
Mortgage arrears are usually paid with no interest. In addition, the bankruptcy rules limit what types of fees can be charged to you by the mortgage company for participation in the bankruptcy process. Bankruptcy filers can also pursue loan modfiications while they are in their bankruptcy case, which may allow them to lower their interest rate and cure their mortgage arrears, and finish their bankruptcy case early.
The cost of starting a Chapter 13 bankruptcy case is low. Most of the attorney’s fees are paid through the plan, meaning that as you pay the trustee your plan payment he is paying your attorney’s fees for you. When averaged over the duration of the plan, your bankruptcy attorney may represent you for as little as $50 a month.
Call a Bankruptcy Lawyer for a Free Consultation and Stop Foreclosure of Your Home
We offer free consultations to discuss how Chapter 13 bankruptcy can be used to stop foreclosure of your home. Call a stop foreclosure lawyer today to schedule your free consultation.