Chapter 13 and Foreclosure

A Chapter 13 bankruptcy filing may stop a foreclosure proceeding. As soon as you file for bankruptcy protection a court order called the automatic stay, goes into effect immediately. With the number of foreclosures climbing to record levels, consumers facing foreclosure will often ask whether a bankruptcy filing will really stop a foreclosure.

The automatic stay is one of the most important aspects of a bankruptcy filing. The automatic stay not only prohibits the creditor from pursuing the foreclosure action, it also prohibits the state court hearing the foreclosure case and from taking any further action. In fact, the automatic stay stops other federal courts from taking any action on a case affected by a bankruptcy filing. Even if a foreclosure proceeding has already been filed, you can stop it with a Chapter 13 bankruptcy filing.

Getting some help and having some questions answered about your individual situation could be beneficial in making your decision. To see if Chapter 13 bankruptcy is an option for you, speak with a local bankruptcy lawyer today. Fill out our form for a Free No Obligation Consultation now.

Chapter 13 Bankruptcy Is King In Stopping Foreclosure Of Your Home

Chapter 13 Bankruptcy is primarily used to stop foreclosure of your home. The bankruptcy petition would need to be filed before the sale date of your property. After filing, you will propose a plan to repay the amount you fell behind on the mortgage. You will also begin to again pay your regular mortgage payments, which under the operation of law must be accepted by your mortgage company.

If you are facing foreclosure, lawsuit, repossession or wage garnishment a Chapter 13 bankruptcy can rearrange your financial affairs allowing you to get back on your feet.

The Chapter 13 bankruptcy law is very powerful: It stops a house foreclosure, allowing you to make up missed mortgage payments and keep your home. It stops repossession, and in most instances allows you to recover a vehicle that has already been repossessed. It stops interest accruing on personal debt, including back TAXES. In exchange for stopping any and all collections activity, one proposes to pay all or, in specific circumstances, a portion of the debt through a Chapter 13 plan.