Many people file Chapter 13 bankruptcy in order to stop foreclosure on their home. In order to save a home from forecIosure, the Chapter 13 bankruptcy must be filed with the bankruptcy court before the Sheriff’s sale of the home takes place.
In most cases, an automatic stay takes effect immediately upon the filing of the Chapter 13 bankruptcy. The automatic stay is a powerful friend of the person filing bankruptcy. The automatic stay will stop the foreclosure action and all other collection activity. With the automatic stay in place, the debtor’s lawyer can propose a Chapter 13 repayment plan to catch up on all past due mortgage payments over a 36 to 60 month time period.
The homeowner must make all future mortgage payments as they come due during the Chapter 13 bankruptcy repayment plan. If the homeowner misses another mortgage payment during his Chapter 13 bankruptcy, the bankruptcy judge could lift the automatic stay and allow the mortgage company to resume foreclosure proceedings.
However, if the homeowner makes all mortgage payments and Chapter 13 plan payments in a timely manner, the homeowner will be current on his mortgage at the end of the Chapter 13 plan.
If you are facing home foreclosure in Oklahoma and would like to know more about how bankruptcy may be able to help you, 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.
{ 2 comments… read them below or add one }
We own a home in Oklahoma. It’s being foreclosed on. We were lied to when we bought the house that it never floods, but it’s flooded every summer we’ve had the house, that’s been 5 yrs now. We were also not told by the mortgage company that in order to do a deed in lieu of foreclosure the house would need to be on the market for 90 days in order to try to do a short sale and then if that didn’t work, we could have done the deed in lieu. I just found that out today. The date for the court is the 19th of June, which I was told the house might be sold that day or a day to sell would be set. My question is if we file for bankruptcy before June 19th would that help us out any?? We don’t want to keep the house, but do need more time to find a place to move and hoping to keep from incurring too many fees because of the foreclosure. What should we do? We have incurred alot of medical bills because myself and my daughter have health problems that we have been dealing with over the past years. I had to quit my job recently due to illness and am trying to file for disability so we are relying solely on my husband’s income. The house needs alot of work to solve the flooding situation and the problems it has created inside the house due to water coming in over the years. It is simply too much for us to financially handle, but we want to try to handle this in a way that won’t financially devastate us for a long time. We also have back taxes that we have yet to file and are trying to clear that up as well. Can you help us and what would the cost be??
Thank you,
Melissa and Charlie Echols
Melissa & Charlie,
I have emailed you directly to discuss your situation.