Did you know you can stop foreclosure on your mortgage upon filing chapter 13 bankruptcy?
Yes, chapter 13 bankruptcy can save your home from foreclosure. In most instances, chapter 13 bankruptcy is filed for that very reason – to stop mortgage foreclosure proceedings, and provide you, the homeowner, with additional time to bring your delinquent mortgage payments current.
Under a Chapter 13 bankruptcy, you are allowed to propose a three to five year debt repayment plan to catch up your mortgage arrearage, and any other secured debts included in the bankruptcy.
It is imperative that you make the bankruptcy plan payments as promised to prevent the mortgage company from contacting you with regards to your pre-bankruptcy arrearage.
If you fail to make the bankruptcy plan payments as agreed, the mortgage company can petition the bankruptcy court to remove your bankruptcy protection, and move forward with mortgage foreclosure proceedings.
For more information about using chapter 13 bankruptcy to save your home, please read our earlier post, Save your Home from Foreclosure.