How Long Will Chapter 13 Delay Foreclosure?
If you are worried about losing your home to foreclosure, you probably have a lot of questions and may be interested in learning how you can delay or prevent the foreclosure. People in this situation often use Chapter 13 bankruptcy to successfully delay or even prevent a foreclosure. How long Chapter 13 bankruptcy will delay a foreclosure depends on several factors.
Simply put, Chapter 13 bankruptcy can at least temporarily delay a foreclosure and in other cases, it can prevent the foreclosure entirely.
How Does Chapter 13 Stop Foreclosure?
Chapter 13 bankruptcy is a powerful tool that allows people to reorganize their debt and keep their assets, including their home. When you file Chapter 13 bankruptcy, a trustee will work with you and your creditors to establish a repayment plan for a period of three to five years. After that time, the remainder of your eligible debt is discharged.
If your mortgage lender has already initiated foreclosure proceedings against you, filing Chapter 13 bankruptcy will immediately stop the foreclosure (at least temporarily). This can buy time for you to remain in your house.
If you are not currently facing foreclosure proceedings but fear you may in the near future, filing Chapter 13 bankruptcy can prevent your lender from initiating foreclosure proceedings against you until your bankruptcy case is resolved. If you are able to successfully complete your court-approved repayment plan over three to five years, Chapter 13 bankruptcy can help you avoid foreclosure entirely.
If you file Chapter 13 bankruptcy, it’s important to remember that if you cannot make your court-approved bankruptcy payments, your house could be at risk again for foreclosure.
Simply put, if you are afraid of losing your home, Chapter 13 might be the right answer for you. It allows you to stay in your house and keep your assets while paying your debt.
On What Terms Can Chapter 13 Stop Foreclosure?
In some cases, Chapter 13 bankruptcy can permanently stop a foreclosure by giving you the opportunity to restructure your debt and catch up on any missed house payments over the course of your negotiated repayment period of three or five years. If you are able to make your payments during this time, you can avoid foreclosure altogether and you’ll be back on track.
As a general rule of thumb, in order to be eligible for Chapter 13 bankruptcy, you will be required to demonstrate that you have regular monthly income and can make monthly payments going forward under a negotiated repayment plan. Depending on your financial situation, your court-approved repayment period will be three or five years.
After you file for Chapter 13 bankruptcy, an automatic stay goes into effect, which immediately stops collection efforts, including foreclosures and repossessions. However, it’s important to remember that you must file a petition for bankruptcy with the bankruptcy court before the foreclosure sale occurs.
To avoid foreclosure by filing for Chapter 13 bankruptcy, you need to act quickly. If utilized correctly, Chapter 13 bankruptcy can be an extremely effective way to delay or avoid foreclosure quickly and legally.
How Long Will Chapter 13 Delay Foreclosure?
How long will filing for Chapter 13 delay foreclosure depend on several factors. At the very least, filing for Chapter 13 bankruptcy can temporarily stop any collections efforts – including foreclosure proceedings.
Once you file for bankruptcy, an automatic stay prohibits any creditors from moving forward with foreclosure and repossession. Simply put, an automatic stay will help buy time for you to come up with a plan to repay any missed payments and ensure you can resume your monthly mortgage payments.
In some cases, a lender can get an automatic stay lifted if they are able to make a compelling case to the bankruptcy court. This can happen if you do not have any equity in the home, and the sale would not benefit your other creditors. Additionally, if you have recently had previous bankruptcy cases dismissed, the automatic stay may be limited to 30 days or may not apply.
Foreclosure laws vary by jurisdiction and can be exceedingly complex, so it’s wise to consult with an attorney who can help ensure you understand your options and that your rights are protected.
Chapter 13 and Foreclosure: How Can Debtstoppers Help?
If you are concerned about a foreclosure and considering Chapter 13 bankruptcy, DebtStoppes can help. The bankruptcy attorneys at DebtStoppers are experts in Chapter 13 bankruptcy and have successfully helped thousands of people file for Chapter 13 and keep their homes.
Many people are concerned that bankruptcy will damage their credit score but it’s important to know that foreclosure and bankruptcy will remain on your credit report for seven years. If you are facing foreclosure, bankruptcy may offer more pros than cons.
Our experienced attorneys will ensure you understand all your options and help you through every step of the process. We understand the ins and outs of bankruptcy law and will ensure you take advantage of all the exemptions and make a compelling case when negotiating your repayment plan. You have rights and our attorneys will make sure you are protected and have the opportunity for a fresh start.
Chapter 13 bankruptcy gives you the opportunity to restructure your debts while keeping your assets. However, it’s important to remember that bankruptcy law is complex and varies from state to state. Your chances of winning your case and getting your debt forgiven are much higher when you have an experienced attorney fighting for you.
DebtStoppers offers free consultations and our experienced attorneys are happy to talk to you about your situation. If you are facing foreclosure, time is of the essence. Call today and make life affordable again.
