Prevent Mortgage Foreclosure
If your home is being foreclosed on because you’re behind on payments, you can stop the foreclosure and get time to catch up by filing for Chapter 13 bankruptcy.
Here’s what we do: We file your Chapter 13 case in bankruptcy court. This prevents the foreclosure from going forward, even if it has already been scheduled for a sheriff’s foreclosure sale (but the case must be filed before the sheriff’s sale). If you need to file for Chapter 13 quickly because the date of your sheriff’s sale is almost upon you, our office can help you. After your case is filed, you must start making the regularly scheduled future mortgage payments. The lender is legally required to start accepting the payments again. You also must start making monthly payments (Chapter 13 plan payments) to the court-appointed Chapter 13 trustee to begin catching up on the past-due house payments. You will not have to pay any additional interest, late fees, etc. after the filing date. You have about three to five years to catch up.
The lender cannot foreclose so long as you make both the regular monthly mortgage payment and the monthly Chapter 13 plan payment. Even if you’re not sure you can successfully complete this process because of your income, you can still obtain valuable time to remain in your home by filing a Chapter 13 case. You can almost always extend the time you get to stay in your home for about 12 months by filing for Chapter 13, even if you don’t make any payments at all on the mortgage after filing the case. Of course, the goal is for you to successfully complete the plan payments and keep your home. We must show the Chapter 13 trustee a reasonable plan that you can successfully complete.
Call our office to find out your rights and how Chapter 13 can help you keep your home.
