How Chapter 13 Bankruptcy Can Stop Foreclosures

Chapter 13 bankruptcy is primarily used to stop a foreclosure of your home. Your bankruptcy petition must be filed before the sale date of your property. After filing, we can help you propose a plan to repay the amount you fell behind on the mortgage. You will begin to again pay your regular mortgage payments as well.

If you are facing foreclosure, lawsuit, repossession or wage garnishment a Chapter 13 bankruptcy can rearrange your financial affairs to allow you to get back on your feet.

Chapter 13 law is very powerful: It stops a house foreclosure, allowing you to make up missed mortgage payments and keep your home. It stops repossession, and in most instances allows you to recover a vehicle that has already been repossessed. It also stops interest accruing on unsecured debt, including back TAXES. In exchange for stopping any and all collections activity, you propose to pay all or, in specific circumstances, a portion of the debt through a Chapter 13 plan. The filing of a Chapter 13 bankruptcy stops ALL collection activity through what is called the "automatic stay". The automatic stay remains in effect during the life of the case unless the court orders otherwise.

If you are facing a foreclosure, a Chapter 13 bankruptcy may be the best way for you to keep your home. Call us now at 330-605-3508 for a free consultation where we can discuss your options. If you want to save your house, you need to take action before it's too late.