Yes. You may be able to save your house from foreclosure in Oklahoma by filing a Chapter 13 bankruptcy.
One of the things that a Chapter 13 bankruptcy does best is stop home foreclosures. A Chapter 13 bankruptcy allows you to get caught up on your missed house payments. You do this by paying the total amount you are behind to your mortgage company over a 3 to 5 year repayment plan. And during this 3 to 5 years, the mortgage company has to stop all foreclosure activity. At the end of the 3 to 5 year repayment plan, you will be caught up on your mortgage.
However, realize that once your Chapter 13 repayment plan begins, you must continue to make your regular monthly mortgage payment so that you do not fall further behind. This can be difficult since you have already been missing mortgage payments. And now you are going to have to make not only your regular ongoing mortgage payment again but also a monthly payment to catch up the amount you are behind. This will require some serious budgeting and discipline on your part. Should you miss another mortgage payment during the 3 to 5 year repayment period, the bankruptcy judge could allow your mortgage company to start up the foreclosure again.
Additionally, the Chapter 13 bankruptcy does not change any of the terms of your mortgage such as your monthly payment or interest rate.
Lastly, if you are facing foreclosure of your home and are interested in filing a Chapter 13 bankruptcy to save your home, you cannot wait until the last minute. It takes time for a bankruptcy lawyer to correctly prepare all of the documents required for a Chapter 13 bankruptcy. And the Chapter 13 bankruptcy must be filed before your house is actually sold at a foreclosure sale or sheriff’s sale. Therefore, do not wait until the last minute to contact a bankruptcy lawyer or it probably will be too late.
If you are behind on your mortgage payments and worried about home foreclosure, contact me today by phone or email to schedule a FREE initial consultation. I would count it a privilege to be able to visit with you in a relaxed and confidential environment where I’ll answer all of your questions in plain English and give you the straight scoop on the pros and cons of bankruptcy as related to your specific situation.
