Save Your Home v Foreclosure

Once your petition for bankruptcy is filed, you get an automatic stay from the Court.  A stay. stops all other Court actions immediately and no one can proceed without permission from the Bankruptcy Court.  If you’re filing for Chapter 7, you must be current in your mortgage payments or this type of bankruptcy will not be available to you if you want to keep your home. Yet, there is an option to save your home if you are behind on your house payments; a Chapter 13 reorganization.

Filing a chapter 13 bankruptcy obtains a stay and stops the filing or continued prosecution of a foreclosure.  A plan is filed with the Court that allows you to pay the regular mortgage payments as well as all your missed payments, including penalties, interest and fees over the duration of your plan period, allowing you to catch up on your arrears.  You also have the option to pursue a Loan Modification to try and change the terms of the loan that may be more favorable.

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