Wednesday, December 12, 2012

Can Chapter 13 Bankruptcy Stop Foreclosure?

Will filing a Chapter 13 bankruptcy stop a foreclosure sale?
December 12, 2012, King and King Bankruptcy

Yes, it’s true.  A Chapter 13 bankruptcy will stop a foreclosure sale.  Chapter 13 bankruptcy helps so many people and families save their home, save their vehicle, get out of tax debt, stop lawsuits and basically get their life back without losing the things that mattered most to them.

To save your house from foreclosure, a Chapter 13 bankruptcy is what you will want to file, not Chapter 7.  In many cases homeowners are first sent a certified letter called a NOTICE OF DEFAULT.  You generally have 30 days to bring your mortgage payments current and if you fail to do so you then receive a NOTICE OF SALE.  This is also called a foreclosure sale date.

Home foreclosure can happen within a surprisingly short period of time. Don’t wait until it is too late to file a Chapter 13 bankruptcy.   Working with your mortgage company on a loan modification process or debt workout plan is a great first option, but also prepare to file a Chapter 13 bankruptcy to stop the foreclosure sale as a backup plan. Meet with a bankruptcy attorney to learn what you need to do to file a Chapter 13 bankruptcy at the last minute.  Initial bankruptcy consultations are provided free of charge and they are totally confidential.

Filing bankruptcy is never a first choice and nobody wants to file bankruptcy if there are other options.  But, there are situations where filing bankruptcy is the very best option.  Chapter 13 bankruptcy works!  And, it works fast.  Call King and King for a free bankruptcy consultation today, 404-524-6400