Chapter 13 bankruptcy can help stop the foreclosure of your home by implementing an automatic stay, which is a court order that prevents creditors from taking any collection actions against you, including foreclosure proceedings. Once you file for Chapter 13 bankruptcy, the automatic stay goes into effect, and your mortgage lender is required to halt any foreclosure proceedings that are currently underway.
The goal of Chapter 13 bankruptcy is to help you catch up on your past-due mortgage payments and keep your home. To achieve this, you will need to create a repayment plan that includes your regular mortgage payments and any past-due payments that you owe. This repayment plan is typically spread out over a period of three to five years.
During the repayment period, you will make regular payments to the bankruptcy trustee, who will distribute the funds to your creditors, including your mortgage lender. As long as you make all of your payments on time and according to the terms of your repayment plan, your mortgage lender cannot proceed with foreclosure proceedings.
It is important to note that Chapter 13 bankruptcy does not eliminate your mortgage debt, but it can provide you with the time and structure you need to catch up on your payments and avoid foreclosure. If you are facing foreclosure or struggling to keep up with your mortgage payments, it is highly recommended that you consult with a qualified bankruptcy attorney to explore your options and determine the best course of action for your situation.
It is important to work with a qualified bankruptcy attorney who can help you. If you are interested in filing bankruptcy please contact Hishaw Law LLC at 1.307.228.0407 if your located within the state of Wyoming or 1.704.218.9883 if you live in the Charlotte, North Carolina area or email us at jhishaw@hishawlaw.com.
