Prevent Foreclosures

Posts Tagged ‘can bankruptcy stop foreclosure’

Although it is not an attractive option to think about, filing for Chapter 13 bankruptcy can actually help you save your home and avoid foreclosure. Unlike filing Chapter 7 bankruptcy, with Chapter 13, you can set up a repayment plan that will allow you to pay missed mortgage payments over a long period of time such as three to five years. As soon as you file for bankruptcy protection, the lender has to stop the foreclosure process immediately until the bankruptcy case is heard in court. When the case is heard, you will work out a repayment plan that is acceptable for to the lender and you. Therefore, the lender will stop the foreclosure effort and you can keep staying in your home.

Avoid paying unsecured debts

The repayment plan will outline what you have to pay and when. If you have unsecured debts, you may end up paying very little towards them or pay nothing at all. That means, you will have money left to pay your missed mortgage payments.

Contest the foreclosure

Sometimes, you can contest the legality of the foreclosure on your home in the bankruptcy court. You can also contest any claims for costs and fees that are added to missed mortgage payments. A lot of the time, these costs are significantly reduced or eliminated when contested.

Get rid of other liens on your home

If you have a second mortgage lien or third mortgage liens on your home, you can usually get rid of them by filing bankruptcy. Most liens that are wholly unsecured can usually be dismissed.

Bear in mind, though, that filing for bankruptcy protection has lots of consequences so you should think carefully about your situation to make sure that it is what you want to do and what you need to do. If you need help or advice from a lawyer, you can use the service below to find one. The service is free and confidential.

Need a Lawyer? LegalMatch allows you to present your case, and respond only to lawyers who want to help you. It's Free & Confidential.

Facing Foreclosure Alone is always tough. You've got to stay in the loop! So in case you're new here, you may want to subscribe to the Prevent Foreclosures RSS feed. It will keep you up to date with the latest resources and tactics on how to prevent your foreclosure from happening.

Many homeowners have heard that they can stop foreclosure if they file for bankruptcy protection. It is true that filing bankruptcy is a way to deal with foreclosure. Sometimes, bankruptcy can stop the foreclosure process completely while the homeowner works out a deal with his or her bank. Other times, filing bankruptcy just buys time and delays the foreclosure process. There is no guarantee that filing bankruptcy will help with foreclosure but it always buys some time for the homeowner to figure out what to do. But, there are many problems that can occur when you try to file for bankruptcy protection so you need to think carefully before you file the bankruptcy petition.

A debtor who does not have any assets to worry about and has no money to pay the mortgage payments will likely seek bankruptcy protection. To do this, he or she must petition in the bankruptcy court. There are many steps that he or she must follow. Recently, the laws changed to make it harder for people to file for bankruptcy protection. You can still do it if you really need to.

The Automatic Stay

The automatic stay is what a homeowner wants when he or she files for bankruptcy protection. Once the automatic stay is issued by the bankruptcy court, all efforts to collect debts from the bankrupt debtor must cease. That means, creditors have to stop calling you or trying to collect from you by law. Collection agencies, repo men, etc will have to quit what they are doing and leave you alone until the bankruptcy case is heard in court. The automatic stay also stops any lawsuits pending on the homeowner who has filed for bankruptcy protection. Basically, according to the law, once the automatic stay is issued, the homeowner is safe, at least for a while.

The outcome of filing bankruptcy

Depending on the type of bankruptcy filed, the outcome will be different for different bankruptcy cases. In some cases, by filing for bankruptcy protection, a homeowner in foreclosure can stay in his or her home for years pending the outcome of the bankruptcy case. This is why some people refer to filing for bankruptcy protection as a way to live 'rent free' and avoid foreclosure. But, in the end, it is up to the bankruptcy judge to decide the fate of the homeowner's case. If the homeowner is able to work out a deal with the mortgage company, then he or she may be able to work out a payment plan and continue to live in the home. If not, he or she will have to move out after the bankruptcy case is closed.

If you are serious about filing for bankruptcy protection, it is best to find out more about the consequences first. This book is a great resource to help you decide if filing for bankruptcy protection is right for you. The book will tell you the differences between different chapter of bankruptcy such as Chapter 7 and Chapter 13.

The New Bankruptcy: Will It Work for You?

Can you stop foreclosure by filing bankruptcy

• determine if you qualify for Chapter 13
• stop a house foreclosure
• estimate monthly payments
• devise an acceptable repayment plan
• complete and file forms
• make up missed mortgage payments
• pay off other debts
• represent yourself before a bankruptcy judge or trustee

The 9th edition is completely rewritten to reflect the recent (and massive) changes to federal bankruptcy law, as well as the latest bankruptcy exemption laws of your state. It also includes the most current legal documents and instructions on filling them out.

Whether you work with a lawyer or file on your own, you'll find everything you need to take charge of your debts in Chapter 13 Bankruptcy.

Please note: This book does not cover business bankruptcies, farm reorganizations or individual repayment plans (Chapter 13). For Chapter 7 Bankruptcy, see Nolo's How to File for Chapter 7 Bankruptcy.

State and Federal Exemption Charts

• Doubling
• Residency Requirements for Claiming State Exemptions
• Exemptions for Retirement Accounts
• Individual State and Federal Charts

Tear-Out Forms

• Voluntary Petition
• Exhibit C to Voluntary Petition
• Exhibit D to Voluntary Petition
• Schedule A -- Real Property
• Schedule B -- Personal Property
• Schedule C -- Property Claimed as Exempt
• Schedule D -- Creditors Holding Secured Claims
• Schedule E -- Creditors Holding Unsecured Priority Claims
• Schedule F -- Creditors Holding Unsecured Nonpriority Claims
• Schedule G -- Executory Contracts and Unexpired Leases
• Schedule H -- Codebtors
• Schedule I -- Current Income of Individual Debtor(s)
• Schedule J -- Current Expenditures of Individual Debtor(s)
• Declaration Concerning Debtor's Schedules
• Summary of Schedules and Statistical Summary of Certain Liabilities and Related Data
• Form 3A -- Application and Order to Pay Filing Fee in Installments
• Form 7 -- Statement of Financial Affairs
• Form 10 -- Proof of Claim
• Form 20A -- Notice of Motion or Objection
• Form 21 -- Statement of Social Security Number(s)
• Form 22A -- Statement of Current Monthly Income and Means-Test Calculation
• Form 22C -- ChaStatement of Current Monthly Income and Calculation of Commitment Period and Disposable Income
• Form 23 -- Debtor's Certification of Completion of Postpetition Instructional Course Concerning Personal Financial Management
• Form 201 -- Notice to Individual Consumer Debtor Under § 342(b) of the Bankruptcy Code Amendment Cover Sheet
• Daily Expenses
• Notice of Plan Amendment and Confirmation Hearing Date
• Proof of Service by Mail
• Chapter 13 Repayment Plan

Buy Chapter 13 Bankruptcy: Keep Your Property & Repay Debts Over Time