Can Chapter 13 Bankruptcy Really Stop Foreclosure?
Discuss the answer with a bankruptcy lawyer today
Can Chapter 13 bankruptcy stop foreclosure? You bet!
In fact, Chapter 13 bankruptcy is the only surefire way to stop foreclosure and prevent other forms of debt collection. That's because as soon as you file, a court order legally protects you from all creditor actions.
While there are other options for lowering your mortgage — the most common being loan modification — Chapter 13 is the only one that is your guaranteed right under the U.S. Constitution.
The truth is, mortgage companies have little incentive to modify your loan. They can actually earn more money by keeping you close to foreclosure than by helping you become current. They do this by collecting late fees and reimbursements from pre-foreclosure steps like inspections and insurance — and, ultimately, money from the sale of your home.
Think about it. Even if you do stop foreclosure by getting new terms for your loan, you are still stuck paying off the same old debts. The same credit cards, the same medical bills and the same loans.
A Chapter 13 bankruptcy plan, on the other hand, can help you eliminate your current financial obligations, so you can put your past behind you and move forward.
Banks are concerned about their bottom line, not yours. Why not choose a plan that's made for you — the homeowner, the consumer, the American citizen?
Even if you've already received a foreclosure notice in the mail, there's still time to take advantage of Chapter 13 and the automatic stay, if you hurry.
Don't give up your home without a fight! Call Chicago DebtStoppers today!
Don't give up. You've worked too hard to let homeownership slip away! Contact a DebtStoppers bankruptcy attorney today for a free debt analysis online, or call 312-913-0630.