Can Bankruptcy Stop Foreclosure ?  

Chapter 13 bankruptcy can be filed to stop foreclosure. Generally, as soon as the petition is filed, an automatic stay is entered.

This would temporarily stop the foreclosure activity along with all actions regarding collection of the remaining payment, regardless of whatever is the foreclosure proceedings stage. This automatic stay would give the person who has to repay debts and also his attorney some breathing time during which they can work an appropriate Chapter 13 repayment plan.

Once Chapter 13 bankruptcy petition is filed, the debtor must also work out a proposed plan within 15 days which would involve setting forth his income, living expenses and payments proposed to the trustee. In addition, the current payments must also be kept current once the petition is filed.

The homeowners should also make all the mortgage payments which may be incurred during Chapter 13 bankruptcy repayment plan. Failure to make the current payments within the due date may lead the court to lift the automatic stay and the foreclosure proceedings would be resumed by the mortgaging company.

If all the payments are cleared on time, the homeowner would be able to catch up the mortgage payments that are due over the repayment plan for 3 to 5 years. He may also become eligible to refinance this property once the repayment period is over.

It is advisable to take the expert advice of a consumer bankruptcy attorney to assess whether Chapter 13 bankruptcy would be a suitable option for you. The attorney can also help you to structure a repayment plan that would work out for your creditors and you.

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Can Bankruptcy Stop Foreclosure ?
 

Loans-For-People-In-Foreclosure      Foreclosure could be very devastating and traumatic for your entire family and creates a black mark in your credit report also. Though lenders may not be quite enthusiastic to approve a new mortgage loan and there may be some setbacks, it is not an impossible task. There are loans for people in foreclosure. More..

 


 

 

 
   
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