STOPPING FORECLOSURE AND SAVING YOUR HOME
For homeowners facing a foreclosure, bankruptcy may provide some relief. For debtors who want to keep their home, a Chapter 13 can be used to cure the default through regular payments stretched out over the life of the plan. For homeowners with a second mortgage, Chapter 7 can be used to discharge the debt owed on the second mortgage after the first mortgage forecloses. Frequently, bankruptcy can be used to protect the debtor’s equity even if the house is going to be sold. If you would like to schedule a free initial consultation to discuss your options for dealing with foreclosure click here or call us at (425) 357-7691 or (866) 415-1705
A CHAPTER 13 BANKRUPTCY STOPPING FORECLOSURE
Filing Chapter 13 prior to the trustee’s sale of your property will stop the foreclosure process. At the Law Office of Ken Schneider we help debtors prepare a plan that cures the default (frequently over five years). If you can afford to make contract payments on the mortgage and the extra amount needed to cure the default the court should approve your plan.
A CHAPTER 7 BANKRUPTCY STOPPING FORECLOSURE
While it is possible to save your home from foreclosure through Chapter 7 bankruptcy, there are more challenges and not as much time. If you are facing foreclosure and there is significant equity in your home but you can’t afford a Chapter 13, Chapter 7 may provide some benefit. If there is enough equity in your home, rather than allow your home to be foreclosed the bankruptcy trustee can sell the house. The sale proceeds will pay off liens, pay you your homestead exemption and then the claims of unsecured creditors. Generally, you will receive more money for your home in bankruptcy than you will if it is foreclosed. If you would like to schedule a free initial consultation to discuss your bankruptcy options for dealing with a foreclosure click here or call us at (425) 357-7691 or (866) 415-1705.