Filing Chapter 13 Bankruptcy to Save Your Home from Foreclosure
Filing Chapter 13 Bankruptcy to Save Your Home from Foreclosure
For some people, filing Chapter 13 bankruptcy may be their only foreseeable way to save their home from foreclosure. Filing Chapter 13 bankruptcy stops all foreclosure proceedings immediately, and the court enforces an automatic stay. With the recent economic downturn, there has been a rise in the number of people filing Chapter 13 bankruptcy, and for that very reason.
When filing for chapter 13 bankruptcy, it is important to remember that you are not relieved from your debts. Chapter 13 is a repayment plan that is carried out of several years. Though you may not need several years to pay down your mortgage and bring it current, Chapter 13 bankruptcy will allow you the time to do it. You will, however, have to pay your monthly mortgage just the same and it keep it current throughout the bankruptcy.
Failure to follow through with the bankruptcy guidelines set before you could cause you to lose your home and any debt you owe will still need to be repaid. So, it is important that you discipline yourself to stick with your repayment plan as you agreed. If you’re having trouble keeping your mortgage current even after filing Chapter 13 bankruptcy, then you should really consider if you can actually afford the home you have because it won’t do you any good to get out of debt only to sink back in right afterwards.
