Can Bankruptcy Stop Foreclosure?
If you have fallen behind on house payments and are threatened with foreclosure, Chapter 13 bankruptcy may allow you to stop the foreclosure, retain your home, and catch up missed mortgage payments over time.
Sometimes families struggle to maintain mortgage payments due to job loss, medical emergency, or other unexpected circumstance. Chapter 13 may provide an essential lifeline to allow you to gradually regain your financial footing over time, without suffering the devastating consequence of losing your home.
Chapter 13 bankruptcy can also provide the benefit of court protection while an application for a mortgage modification is pending. Applying for a mortgage modification can be frustrating in itself, but it can be more unnerving when a sheriff’s sale date has been scheduled. Although any modification must be approved by the bankruptcy court, Chapter 13 offers peace of mind during the process.
Timing is critical to stopping the foreclosure sale, and the Chapter 13 bankruptcy must be filed before the sale date. If you are facing foreclosure, please contact a bankruptcy attorney immediately to discuss your options.