How Do I Prevent Foreclosure With Bankruptcy?

Both Chapter 13 and Chapter 7 bankruptcy can help prevent home foreclosure. A Chapter 7 bankruptcy eliminates your unsecured debts (which can help free up your income to put toward a mortgage or real estate payment) and Chapter 13 restructures your debt into a manageable monthly payment to help you pay off your debt over a period of 3-5 years. Each type of personal bankruptcy can help you prevent foreclosing on your home or other real estate property.

Foreclosure has a process of it’s own and when you're faced with a home foreclosure notice, it can really stress you out. It really takes a toll on your entire life and family. We understand what you’re going through and want to provide you with information to avoid foreclosure from taking your home, so you can get on with your life.

  • When you file Chapter 7 or Chapter 13 bankruptcy, an automatic stay is placed on your debt. This means your mortgage lender cannot proceed with the foreclosure while you’re in bankruptcy.

  • Immediately after filing bankruptcy, we’ll notify your mortgage lender to make them aware you have filed bankruptcy, the quicker they are notified, the sooner they can stop taking action and cease foreclosure efforts on your property.

  • We’ll work with you and the lender to execute a reaffirmation agreement to make sure you remain in possession of your home and keep ownership of the property. This agreement will also state that you intend to make all future loan payments on time.

  • A copy of the reaffirmation agreement will be sent to the Trustee assigned to your bankruptcy case.

  • You’ll probably want to file Chapter 13 bankruptcy if you want to keep you home.

  • If you want to stay in your home but have fallen behind on mortgage payments and don’t see any future improvements in your income or a way to become current on your mortgage, then Chapter 13 bankruptcy might be the only way to save your home.

Can Chapter 13 Bankruptcy Save Your Home?

If you’ve fallen behind on payments and your mortgage is in arrears, meaning late, unpaid payments, then Chapter 13 allows you to create a plan to break those late payments into manageable monthly payments over a 3-5 year period while giving you the ability to stay current and make on-time payments on your mortgage. If, after your repayment period under Chapter 13, you still have outstanding unsecured debt it gets discharged and the only debt you’ll have is for your home and other secured debt. This will make your ability to pay your mortgage on time much more likely and a huge benefit of Chapter 13 bankruptcy.

Note: You will need at least enough income to pay your current mortgage payments on time each month throughout your bankruptcy while making small payments to pay off the arrearage. If you make all arranged payments on time throughout your bankruptcy you’ll avoid foreclosure.

Save your home with Chapter 13 bankruptcy

Contact us and tell us your financial situation, bankruptcy can probably help you.

Paolucci Bankruptcy Law:

AKRON

FAX: (330) 288-0335

DEAN'S EMAIL

[email protected]