Facing Bankruptcy Foreclosure
Foreclosure on a real-estate, especially if your home is in jeopardy, is very scary and can be a humiliating process. Essentially, the mortgage company is trying to take away the property for which you have made substantial sacrifices, and might be the culmination of a life-long dream. All too often, if the mortgage company was to only provide you with a little more time or give you one more break you could get caught up. It’s usually the mortgage company that will insist on a particular payment plan you cannot afford, or demand a large up-front payment in exchange for a loan modification you simply cannot make in time. Just because your mortgage company is pushing for a foreclosure, and asking for an impossible repayment terms does not mean you will lose your home! A Chapter 13 Bankruptcy filing before a court order foreclosure sale has the power, among other things, to save your home!
A Chapter 13 Bankruptcy will take off your delinquent mortgage payments, including attorney fees and late charges, and place them into a court enforced, structured repayment plan through a Chapter 13 Bankruptcy Trustee. Rather than adhering to impossible terms that the bank might be offering, you have the opportunity to stretch out the payment of your mortgage arrears over some or all of the 36 to 60 months of a Chapter 13 Bankruptcy repayment plan. Chapter 13 Bankruptcy, similar to a Chapter 7 Bankruptcy, can also stop other forms of collection by all of your creditors, including other lawsuits, garnishments and harassing phone calls. Chapter 13 Bankruptcy, a can even prevent the repossession of a vehicle.
The chapter 13 can also help you better afford your mortgage because it can eliminate most of the rest of your unsecured debt. If you can wipe out, for instance, $500 per month on credit card payments, you could use the $500 per month to pay your mortgage. Thus, filing chapter 13 bankruptcy can give you a fighting chance to save your house in this way too.
During the time that your Chapter 13 Bankruptcy is pending the mortgage company, along with all of your other creditors, cannot collect form you directly. More importantly, upon filing of a Chapter 13 Bankruptcy the mortgage company must stop the foreclosure process, and wait to take payments for mortgage arrears through the Chapter 13 Trustee. While you are still required to make your regular mortgage payments, if you fall behind on those payments during a Chapter 13 Bankruptcy repayment plan the mortgage company must provide you will an opportunity to bring your mortgage payments up to date. If you successfully complete the Chapter 13 Bankruptcy repayment plan, and remain current on your post-filing mortgage payments you will emerge from the Chapter 13 Bankruptcy completely current on mortgage and free from general unsecured debt.
With a Chapter 13 Bankruptcy you can force your mortgage company, and other creditors, to take payments on your terms! To find out more about to save your home with a Chapter 13 bankruptcy contact a Jacoby Meyers Bankruptcy Law’s attorney right away.