Your home is not just the place where you and your family sleep at night. It’s a place to feel comforted and safe when the world outside can be tough and complicated. When you are faced with a foreclosure, you don’t just worry about where you’re going to sleep, you are worried about where you and your family are going to be safe.
Take a look at how a Chapter 13 bankruptcy has the ability to stop your home from being taken away from you.
Bankruptcy's Automatic Stay Temporarily Stops Foreclosure
Filing for bankruptcy has many advantages when trying to get back on your feet financially. One of the most notable benefits of bankruptcy is the “automatic stay.”
The moment you submit your bankruptcy filing to the court, an automatic stay is issued and goes into effect immediately. This puts a temporary stop to all creditor and debt collections for the duration of the bankruptcy proceedings - including foreclosures. Foreclosure, along with other debt collection such as repossession, harassing creditor calls, etc. are immediately halted, giving gives you the much-needed breathing room to sort out your finances and finish the bankruptcy process.
How Chapter 13 Can Protect Your Home
- Temporary stop to foreclosure: Through the automatic stay, Chapter 13 bankruptcies provide the opportunity to save your home by immediately halting the foreclosure demands from your mortgage company.
- Catch up on missed payments: Chapter 13 bankruptcies are made to help restructure your current payment plan to make fulfilling your obligations more affordable. Chapter 13 gives you the opportunity to catch up on your missed payments over the span of three to five years, allowing plenty of time to catch up.
- More affordable monthly debt repayment: Chapter 13 debt payments are based on your disposable income and what you can afford. You may also be able to modify your mortgage to a more manageable monthly payment during your bankruptcy case.
- Creditors receive payment through bankruptcy trustee: With the absence of creditors threatening you directly over the status of your debts, you will have a trustee assigned to distribute your payments to your creditors. During the bankruptcy process, you will never need to directly interact with your creditors, to provide the best opportunity to focus solely on getting back on track.
As long as your home has not already been sold in a foreclosure sale, Chapter 13 is an effective way to help protect your home.
Contact Our Bankruptcy Attorneys Today!
Dealing with debt is hard enough on its own, but having to protect your home from foreclosure by yourself can be a nightmare. We provide a compassionate and personalized approach, designed to do whatever is possible to get you back on your feet.our website or give us a call at (310) 846-8454