Before You File Chapter Thirteen Bankruptcy To Stop Foreclosure
If you are facing foreclosure, your biggest concern right now is how to save your home. Nothing else really matters. You are facing an uphill battle, but it is not impossible to stop foreclosure. Filing for chapter thirteen bankruptcy is last resort way to keep from losing your home.
The first step in filing for chapter thirteen is to attend credit counseling. This is required by the bankruptcy code. Only certain agencies are approved for this counseling, so be sure to consult with your bankruptcy attorney to make sure the agency you use will qualify. The agency may come up with a plan for you to pay back your debts. If so, you have to give a copy of the plan to the court when you file for bankruptcy.
You are given fourteen days from the time you file for chapter thirteen bankruptcy until your proposed repayment plan has to be on file with the court. This window can enable you to go ahead and file if you need to get the foreclosure on your home stopped before you can finish your plan.
Before the judge considers whether to accept your plan, you are required to appear at a meeting of your creditors. The purpose of this meeting is to allow the mortgage company and other creditors to try to poke holes in your plan. Your creditors have a right to object if they do not feel they are getting as much as they are entitled to by law under your repayment plan.
After the creditor’s meeting has been completed, your repayment plan will be reviewed by the court to make sure that it meets the requirements set forth in the bankruptcy code. It can take up to 45 days for approval, but you have to start making payments according to the terms of the agreement within 30 days.
The downside to using bankruptcy to avoid foreclosure is that sometimes it only postpones it, and then you end up with both a foreclosure and a bankruptcy on your credit. It is often difficult to stick to the repayment plan, and if you fail, you can still lose your home. But before you file chapter thirteen bankruptcy explore all possible options, talk to an experienced loan modification attorney first.
For assistance with loan modification contact a qualified loan modification attorney that will look out for you and your family’s best interest such as Janian and Associates.
Tags: Bankruptcy, Chapter 13, foreclosure, loan modification, Mortgage, stop foreclosure
