Can Bankruptcy Stop Foreclosure? An Introduction
With foreclosures at record highs homeowners are eager to know how to stop their homes from being foreclosed.
Bankruptcy is an option, but the question still remains, can bankruptcy stop foreclosure? The answer is yes.
There are different types of bankruptcy but the one you can file to stop foreclosure on your home is Chapter 13.
Chapter 13 bankruptcy petitions will allow you stave off foreclosure on your home for a limited period of time.
Chapter 13 bankruptcy will permit you to be able to stop foreclosure on your home by means of an "automatic stay.
" This will come into effect soon as you file for Chapter 13 bankruptcy.
It means that all your creditors including the mortgage lenders cannot demand for money or move against you regarding your debts.
This is a temporary stay but will give you time to try to work out a solution to your debts and develop a plan to pay back creditors.
Within 15 days of filing for Chapter 13 bankruptcy the petitioner must come up with a plan to pay creditors.
Mortgage payments should resume at this point.
If you pay the monthly payments on time foreclosure will be stopped.
However if you continue to default in payments the automatic stay can be lifted and foreclosure proceedings will go forward.
Many people will resort to filing Chapter 13 bankruptcy to stop foreclosure on their home.
It is very useful in that it will give you a chance to get your financial house in order by allowing you a period of time when your creditors will not harass you.
This in turn will let you work out a payment plan, so that you can pay your debtors and prevent foreclosure on your home.
Before filing Chapter 13 bankruptcy you will need to be aware of an important fact.
You will be required to bring to the table some sort of plan to pay your creditors especially your house payments.
You will also need to have a job or a steady source of income.
Another important criterion for filing this type of bankruptcy is the fact that your debts cannot exceed a certain amount.
For this reason it wise not to procrastinate in taking swift action to avoid foreclosure on your property.
The banks or lending institutions will give you plenty of notice before starting foreclosure procedures.
This is when you should try to assess your financial situation to save your home.
So can bankruptcy stop foreclosure? Yes if you act in a timely fashion and make a financial plan to repay your debts.
Bankruptcy is an option, but the question still remains, can bankruptcy stop foreclosure? The answer is yes.
There are different types of bankruptcy but the one you can file to stop foreclosure on your home is Chapter 13.
Chapter 13 bankruptcy petitions will allow you stave off foreclosure on your home for a limited period of time.
Chapter 13 bankruptcy will permit you to be able to stop foreclosure on your home by means of an "automatic stay.
" This will come into effect soon as you file for Chapter 13 bankruptcy.
It means that all your creditors including the mortgage lenders cannot demand for money or move against you regarding your debts.
This is a temporary stay but will give you time to try to work out a solution to your debts and develop a plan to pay back creditors.
Within 15 days of filing for Chapter 13 bankruptcy the petitioner must come up with a plan to pay creditors.
Mortgage payments should resume at this point.
If you pay the monthly payments on time foreclosure will be stopped.
However if you continue to default in payments the automatic stay can be lifted and foreclosure proceedings will go forward.
Many people will resort to filing Chapter 13 bankruptcy to stop foreclosure on their home.
It is very useful in that it will give you a chance to get your financial house in order by allowing you a period of time when your creditors will not harass you.
This in turn will let you work out a payment plan, so that you can pay your debtors and prevent foreclosure on your home.
Before filing Chapter 13 bankruptcy you will need to be aware of an important fact.
You will be required to bring to the table some sort of plan to pay your creditors especially your house payments.
You will also need to have a job or a steady source of income.
Another important criterion for filing this type of bankruptcy is the fact that your debts cannot exceed a certain amount.
For this reason it wise not to procrastinate in taking swift action to avoid foreclosure on your property.
The banks or lending institutions will give you plenty of notice before starting foreclosure procedures.
This is when you should try to assess your financial situation to save your home.
So can bankruptcy stop foreclosure? Yes if you act in a timely fashion and make a financial plan to repay your debts.
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