YES! You can use bankruptcy to stop a foreclosure on your real estate. If a foreclosure is imminent and you wish to keep your home, the most common form of bankruptcy used to stop a foreclosure is called Chapter 13. Chapter 13 is a form of bankruptcy that works similar to, and is often referred as, debt consolidation. The premise is to take all of your debt and put it into one monthly payment plan.
You can use this payment plan to get caught up on your mortgage payments that are in arrears. In most circumstances, you will file a chapter 13 plan that includes all the arrearage that is due on your mortgage loan, to include and fees and costs that the mortgage company has accrued on your account to oversee the foreclosure thus far, in the chapter 13 plan as a debt to be paid over time. Once your chapter 13 plan is filed with the bankruptcy court, you will then resume regular payments on the regular due date to the mortgage company directly each month on forward beginning with the first month after you file your chapter 13 bankruptcy. You will be considered current with the mortgage company on the first post-chapter 13 month as the bankruptcy automatic stay stops the mortgage company from trying to continue collection efforts outside of the Chapter 13 for the pre- bankruptcy arrearage amounts. See my www.bondandbotes.com blog post of September 24, 2012 for more information on the automatic stay.
If you have a foreclosure pending, time is of the essence. I cannot stress enough that timeliness is everything in utilizing Chapter 13 bankruptcy to stop a foreclosure. If you have been notified that a foreclosure sale is occurring soon on your property, I urge you to contact an experienced bankruptcy attorney immediately to discuss the options that you may have under bankruptcy to stop the foreclosure.
If you are facing the possibility of foreclosure and need advice I encourage you to contact our office location nearest you to set up an initial free consultation with one of our licensed attorneys to discuss your options. Please tell our receptionist that you are concerned about a foreclosure and we will then set you up with an appointment immediately.