Did you know that you can file bankruptcy to stop foreclosure? In order for this protection to be more than temporary, you must be able to pay your mortgage after filing and you must repay the delinquency over time , but your mortgage lender may not foreclose on you once you file bankruptcy without the bankruptcy court’s permission as long as your bankruptcy case is open.
In order to keep your home, you need to file a chapter 13 bankruptcy. You would be in bankruptcy for 3-5 years, and chapter 13 is equivalent to a debt consolidation, except through the bankruptcy court instead of a private company. You must begin paying your mortgage in full and on time once you file chapter 13, and you must repay your mortgage delinquency over 5 years in monthly payments to the chapter 13 trustee. These payments must also include any other debts that must be paid in the bankruptcy, such as outstanding car loan payments and recent tax debts. Your general unsecured creditors for debts like credit cards and doctor & medical bills are entitled to 0-100% depending on certain financial factors that would be determined upon preparation of your bankruptcy documents.
If you cannot afford to pay your mortgage as it is, our bankruptcy court has a loan modification program for debtors in chapter 13 bankruptcy cases. While there is no guarantee that any applicant will get a loan modification, the success rate of our court’s program is much higher than for people who try loan modifications on their own.
If you are in danger of losing your home to foreclosure, contact a bankruptcy attorney today. Bankruptcy is the surest way to stop a foreclosure and save your home.