Is It Too Late to File Chapter 13 Bankruptcy to Stop Foreclosure on My Home?
The foreclosure crisis across America is not over—at least not yet. While the economy shows signs of increasing stability, the number of housing foreclosures is on the rise again. The nation experienced several months of decline after foreclosures peaked at 2.2 million in 2010. However, recent statistics show an 11 percent jump in May and experts expect the numbers to keep climbing. A Chapter 13 bankruptcy can stave off foreclosure.
You CAN stop the foreclosure process
There may be a number of circumstances that affect your ability to keep up with mortgage payments, including unemployment or high medical bills. When people lose their ability to keep up with mortgage payments and other obligations, they may feel embarrassed or afraid and don't seek help in time.
The foreclosure process in Chicago can take up to 15 months before your lender can force you out of your home. This allows you ample time to pursue options that will protect your homeownership rights. However, if you miss any steps or any deadlines, you could lose everything. Many homeowners find themselves in unchartered waters when they try to resolve foreclosure issues on their own. Some even fall prey to scams that make matters worse.
How Chapter 13 works to stop foreclosure
Once you file Chapter 13, an automatic stay prevents all of your creditors pursuing collection activities against you, including foreclosure. By filing under Chapter 13 you and your creditors arrange a payment plan to repay your debt over a specified period of time. Your scheduled payments under Chapter 13 are usually lower than your original payments.
Once accepted, both you and your lender must comply with the terms of the plan. As long as you make the payments as agreed until you completely pay off the debt, you can stop foreclosure. Trust a qualified legal team to help you file for Chapter 13 bankruptcy and stop foreclosure.
Through the financial reorganization plan of Chapter 13, you can keep your home out of foreclosure. If you are facing foreclosure on your home, you are not alone. Contact DebtStoppers, BankruptcyLawFirmfor a free debt evaluation.
a specified period of time at a more affordable, reduced monthly payment amount.
If you are having trouble keeping up with payments on your debts and need to reorganize, Chapter 13 may be your answer to financial freedom. You should consult with an experienced foreclosure attorney from DebtStoppers, Bankruptcy Law Firm to determine if Chapter 13 is the right solution for you.