Can Chapter 13 Bankruptcy Save My Home?

Can Chapter 13 bankruptcy save your home? While this might not be a question you have thought to ask yourself, the answer could be a resounding “yes.” Dealing with significant debt while also facing foreclosure can be extremely stressful, and if you have never been in a financial position like this before, you might be assuming that you do not have any options left. However, it is essential for you to know that Chapter 13 bankruptcy is a type of bankruptcy that not only allows consumers to reorganize their debt and catch up with creditors, but it can also stop a foreclosure from happening and allow a homeowner to remain in their home. So, if you are wondering whether Chapter 13 bankruptcy might be able to save your home, it is important to get in touch with a consumer bankruptcy attorney in Oak Park who can learn more about your financial circumstances to determine whether Chapter 13 bankruptcy is an option for you.

How Can Chapter 13 Bankruptcy Stop Foreclosure?

Many people wrongly assume that bankruptcy for consumers always involves a liquidation of non-exempt assets, but this process only takes place in a Chapter 7 bankruptcy filing. In a Chapter 13 bankruptcy case, you should not expect any of your assets to be liquidated. Instead, under the Bankruptcy Code, exemptions are used in part to determine the amount of your monthly payments on your debt repayment plan over the course of the bankruptcy case (usually three to five years). So, you might ask yourself, how can Chapter 13 bankruptcy stop foreclosure?

In short, there are two key features of a Chapter 13 bankruptcy case that stop a foreclosure from happening and that allow you to keep your home. First, the automatic stay — an injunction that applies in Chapter 13 and other bankruptcy cases, too — halts any additional action from a creditor or debt collector. Accordingly, the automatic stay stops a mortgage servicer or lender from moving forward with any type of foreclosure action, whether it is initiating foreclosure or even at the point of a foreclosure sale. Then, the unique part of a Chapter 13 bankruptcy case is that it gives debtors an opportunity to get caught up on payments with creditors through the repayment plan. What this means is that you can use the repayment plan to catch up on your mortgage payments in order to keep your home.

Contact an Oak Park Bankruptcy Attorney

Are you thinking about bankruptcy, and are you also at risk of foreclosure? Chapter 13 bankruptcy could be a beneficial option for you. If you are considering Chapter 13 bankruptcy or if you are hoping to learn more about how a Chapter 13 bankruptcy filing could allow you to avoid foreclosure and remain in your home, it is important to get in touch with an Oak Park bankruptcy lawyer who can help. As we have mentioned, you will need to meet certain eligibility requirements in order to file for Chapter 13 bankruptcy, but an advocate at our firm can speak with you today. Do not hesitate to reach out to us to find out more about avoiding foreclosure with a Chapter 13 bankruptcy filing. Contact the Emerson Law Firm to learn more.



See Related Blog Posts:

Top Kinds of Debt That Can Be Discharged in a Consumer Bankruptcy Case

How to Decide Between Chapter 7 and Chapter 13 Bankruptcy

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