Can I Use Bankruptcy to Stop a Foreclosure?

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.

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Bond & Botes Law Offices

At Bond & Botes, we now offer full service bankruptcy consultation and filing over the phone or by video from the comfort and safety of your home or office. Please call 1-877-581-3396 or click here to setup your free phone or video consultation.

The lawyers at the Bond & Botes affiliated offices serve clients at offices in Anniston, Birmingham, Mobile, Montgomery, Opelika, Decatur, Huntsville, Florence, Haleyville and Gadsden, Alabama; Vicksburg, Hattiesburg and Jackson, Mississippi. Read our disclaimer here. You can view our Privacy Policy here.

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Birmingham

2107 5th Avenue North
Age-Herald Building
Birmingham, Alabama 35203
Phone: (205) 802-2200


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Birmingham, AL 35244
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Florence, AL 35630
Phone: (256) 760-1010


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Huntsville, AL 35801
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Montgomery, AL 36104
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605 Bank Street
Decatur, AL 35601
Phone: (256) 355-2447


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Haleyville, AL 35565
Phone: (205) 486-3580


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430-B Chestnut Street
Gadsden, AL 35901
Phone: (256) 485-0195


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216 South 8th Street
Opelika 36801
Phone: (334) 887-7666


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1302 Noble St #2C
Anniston, AL 36201
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Cullman, AL 35055
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5760 I-55 North, Ste 100
Jackson, MS 39211
Phone: (601) 353-5000


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607 Corinne St, Ste B8
Hattiesburg, MS 39401
Phone: (601) 264-7200


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1212 Farmer Street
Vicksburg, MS 39180
Phone: (601) 353-5000

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