Bankruptcy Can Halt A Foreclosure

The automatic stay that goes into effect upon filing of most cases is powerful - powerful enough to prevent your house from being sold at a foreclosure sale.  

But a bankruptcy can do more than temporarily prevent a foreclosure - it can give you the tools to bring your loan back into compliance, and keep your house (or other property) far into the future.

What can't happen is turning back time - if the sale has already happened, options are severely limited.  This is why it is important to jump on these issues early, and not wait until the night before the sale..

A Plan to Save Your House
The Chapter 13 tools give you a number of options to save your property.  The easiest way is simply paying the missed payments back over the life of your Chapter 13 plan.  But that doesn't work for everyone.  Sometimes, a refinance or a loan modification is your best option - every case is unique, and worth exploring during your consultation.  You can even sell the house so you can get your equity out, instead of seeing it evaporate at a foreclosure auction.

Powerful Tools for You
The same rules that apply for houses can also apply for saving an investment property or commercial property.  The goal of a Chapter 13 is a successful reorganization, to help you get back on your feet.  For some people that is saving a valuable asset, and for others it means cutting a bad investment loose.  

A Chapter 13 can also be used to strip a 2nd or 3rd mortgage off a property, or remove judgment liens from title.  These depends on the value of the property, whether it is underwater, and how much equity you have in it.  

Lastly, it is important to remember that while Chapter 13 can do a lot of things, it generally won't make your housing payment disappear.  If you want to keep the house, Chapter 13 gives you options for paying for it.