Foreclosure Information

How can bankruptcy stop foreclosure?

Bankruptcy provides for an automatic stay, which halts all collection efforts including foreclosure sales.  Upon notification of a bankruptcy filing, mortgage creditors are REQUIRED to remove a scheduled foreclosure sale from the foreclosure docket and comply with the Debtor’s repayment plan under chapter 13.  For example, a Debtor, who was six months delinquent on a mortgage note with payments of approximately  $1000.00 per month, could file a Chapter 13 Bankruptcy and pay back the $6,000.00 delinquency over a three to five year payment plan.  If the debtor meets the other requirements to make the Chapter 13 Bankruptcy plan successful, this can be the difference between a Debtor keeping or losing their property.

More Foreclosure Topics

• What is foreclosure?
• Why are foreclosures on the rise?
• Can I stop a foreclosure without filing bankruptcy?

Topic: Stopping Foreclosure through bankruptcy

.:Bankruptcy Attorney Blog :.