How Can A Chapter 13 Bankruptcy Affect A Foreclosure?
A Chapter 13 can stop a foreclosure from proceeding and allow you to pay back arrearages on your mortgage, so yes, it certainly can. If it’s your home, for example, after you file the first month, typically, the next month you will start making the regular payment; then once your plan is accepted or confirmed by the court, the trustee can start making payments on the back payments. For example, if you are $10,000 behind on your mortgage and you can make several months’ worth of late charges and interest payments, you can file for a Chapter 13 that would stop the mortgage company from foreclosing.
The month after you file, you will make your regular payment that you normally do on your mortgage; and then once the plan is confirmed, the trustee will pay a certain amount due on the back payment until it is paid in full. This keeps the mortgage company from ever foreclosing, and at the end, you get to keep your house and ride off into the sunset, so you basically pay the bank back based on your ability and not what the note originally required you to do.
What Is The Role Of An Attorney In A Chapter 13 Bankruptcy?
Typically, your attorney will advise you regarding the differences between Chapter 7 and 13, which means looking at your financial situation and your debts. Once he advises which one would be more appropriate for you, he will guide you through the whole process.
Sometimes Chapter 13 cases are dismissed because the client simply can’t pay anymore due to a job loss or other situation; sometimes there is the possibility of changing over to a Chapter 7 if the circumstances are warranted, but basically the lawyer should take the client from the beginning through the end as best as he can and make adjustments along the way. For example, if a client has a rough time and can’t make a payment, they can do what’s called a moratorium. This offers the client the chance to miss a payment for a month or two due to a hardship. This will require applying to the court to get permission to skip the payment, which will be added onto the end of the plan. So there are all kinds of little things that occur along the way that an attorney can help you with.
What Sets You Apart In Handling Chapter 13 Bankruptcy Cases?
I have over 38 years of experience in law and 36 in bankruptcy. I also have a very strong commitment to people who find themselves in a tough predicament and have represented people, across the spectrum, because I believe that people should be treated with compassion, respect and dignity. It’s hard when you’re in the fire pit, and you’re facing all these things that are happening to you; you have to try to keep your sanity and your logic and do the best you can, and I think an attorney that’s been involved for many, many years can help you do that. So if you play your cards right and do all the things you are supposed to do, you can keep your property, get out of a dire situation and go on to live a normal, peaceful life.
For more information on Chapter 13 Bankruptcy & Foreclosures, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (210) 734-5725 today.
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