If you are behind on your mortgage payments and facing foreclosure, filing Chapter 13 bankruptcy will stop the foreclosure and give you time to catch up on the payments. Even if your foreclosure is soon, filing for Chapter 13 today will stop your mortgage lender from going forward with the foreclosure sale.
When you file a Chapter 13 petition with the U.S. Bankruptcy Court, the Court issues an Automatic Stay which stops your lender from selling your house or continuing any effort to collect on the missed mortgage payments.
The Automatic Stay will remain in effect as long as you make timely payment plans to the trustee and continue to pay your on-going mortgage. This means that your lender can’t foreclose on your home solely because of the missed house payments.
Chapter 13 bankruptcy allows you to reorganize your debt and repay it through a payment plan from your disposable income. The length of the payment plan depends on your income and can last from 36 to 60 months. This means you can catch up on your late mortgage payments by paying a portion of them back each and every month until your payment plan is finished. When you finish making the plan payments, your mortgage will be current and you will still own your home.
If you live anywhere in the Upper Peninsula of Michigan and are late on your house payments, call Upper Peninsula Bankruptcy Lawyers Church and Korhonen, PC at (800)758-5611 to see if Chapter 13 Bankruptcy can help you keep your home.