What does Chapter 13 have to do with foreclosure?
Chapter 13 & Foreclosure
Taking the Necessary Steps to Save Your Home
The fear of losing your home is very real if you are unable to stay on top of mortgage payments. When you fall behind, a lender may take legal steps to foreclosure. Fortunately, bankruptcy can offer you protection and prevent the loss of your home. If you are considering filing for bankruptcy as a means of stopping foreclosure, it is important to act right away.
As a Gainesville bankruptcy attorney, I understand what you are up against. You can trust my team to create strategic solutions for your problems and work tirelessly on your behalf. With over 20 years of experience, I understand the bankruptcy system like few other attorneys. This knowledge is invaluable when it comes to the real-life concerns my clients are facing.
How can Chapter 13 bankruptcy prevent foreclosure?
When you file for Chapter 13, an automatic stay is immediately issued by the court. This means that all collection attempts by creditors must cease, including foreclosure. Even if a foreclosure sale has been scheduled, it must be stopped and cancelled while the bankruptcy is pending.
Chapter 13 offers homeowners facing foreclosure the following advantages:
- The ability to catch up on mortgage payments through a repayment plan
- The cancellation of the foreclosure sale
- The benefit of not having to pay your second mortgage by completing the repayment plan (certain restrictions apply)
The Chapter 13 repayment plan covers a period of three to five years during which you pay off certain debts. Individuals with a high enough income and the desire to save their home can benefit immensely from Chapter 13 for this very reason.
Move forward with a Gainesville bankruptcy lawyer!
Most lenders have no inhibitions about starting the foreclosure process and won’t hesitate to take legal action if you are behind on mortgage payments. At my firm, I know how imperative it is to move swiftly and with complete single-mindedness. The goal is to save your home–you can rely on my team to do whatever it takes to make that happen.