Can Filing Chapter 13 Stop Foreclosure?
Now that the Foreclosure and eviction moratoriums have been lifted many people across the nation are facing the very real possibility of losing their homes due to foreclosure proceedings. When this happens, a lot of folks begin to look for ways to stop, stall, or prolong this event from happening. So we get asked this question often.
The answer is yes, filing for Chapter 13 bankruptcy can give a homeowner a little bit of breathing room when it comes to making mortgage payments and catching up on what is past due. However, it is not a guaranteed stop loss.
The automatic stay that is issued by the courts will pause communication and past-due collection efforts from your lender. However, the sooner you file, the better chance you have of keeping and remaining in your home.
The reason why timing is of the essence is that if the mortgage lender has completed the foreclosure sale before your bankruptcy is filed, then the house can still go into a foreclosure auction. Further. The automatic stay and subsequent bankruptcy procedure can allow you to get caught up on mortgage payments you have missed in the past, but you are still obligated to make your future payments as scheduled.
However, if you have been able to maintain a steady income, then Filing for Chapter 13 can be just the ‘break’ you are looking for and has helped many families remain in their homes and enabled them to work out a new payment plan with their lender.
If you are facing Foreclosure or if you just have a few questions about the procedures and what your options might be then please feel free to fill out the form below, and we will be happy to schedule a free consultation with you. For more pressing inquiries you can always reach us by telephone as well by calling 720-515-9887
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