The Purpose of Chapter 11 Filings
The Purpose of Chapter 11 Filings
If your home is facing foreclosure, Chapter 11 filings could be the solution to your problem. Once the foreclosure process has begun, it is important to act as quickly and as rationally as possible. If you have no monetary resources to draw from and your lender is unwilling to negotiate on your payments, then Chapter 11 filings might just save you.
It is very important that you have gone to court for your Chapter 11 filings prior to the scheduled sale date of your home in order to retain the ownership of your home. What the Chapter 11 bankruptcy will do is give you time to catch up your payments on your home. However, it’s not meant to be a crutch so that you can be late again and again over time. During the bankruptcy, you are required to keep up to date on your mortgage payments if you want to keep your home.
One thing to remember when proceeding with Chapter 11 filings is that the bankruptcy process can last from 3 to 5 years, so it’s not a quick fix. During this time, you will have to stick to your debt repayment plan and on top of that, pay the court maintenance fees, too. And in the event you choose to backout or just don’t follow the bankruptcy through to completion, you’ll end up losing your home anyway.
