Chapter 13 bankruptcy may save a home from foreclosure. Chapter 13, also known as individual debt adjustment, enables a homeowner to create a monthly repayment plan with the creditor and other creditors to catch up on owed debt. A debtor who files a Chapter 13 bankruptcy petition receives an automatic stay from lenders, leading to the stoppage of all debt collection actions. A mortgage lender has to freeze a foreclosure actions against a debtor who’s under Chapter 13 bankruptcy protection, until the stay is lifted by the court.
Visit the official website of the United States Courts. All bankruptcy cases are filed in and managed by the national court system. The section”Bankruptcy Basics” has a subsection dedicated to Chapter 13 that covers how the request affects a home mortgage and stops foreclosure.
Visit with your regional bankruptcy court. You may find advice and pamphlets on Chapter 13 bankruptcy and the cost of the mandatory filing fees for the request in your town.
Consult with a bankruptcy lawyer. An attorney that specializes in bankruptcy cases may clarify how submitting Chapter 13 will help you with your mortgage, and may file the paperwork to you. Ask about the fees for the attorney’s assistance before you sign any documents.
Visit with a customer counseling service. The office of the bankruptcy court where you will file might have a list of recognized local counseling agencies. The credit counselors can provide you with advice about Chapter 13 bankruptcy and other options which are available to you. Ask about the cost of the counseling session before you attend the appointment.
Contact a HUD Housing Agency to get a counseling appointment. HUD, or the Department of Housing and Urban Development, is a national housing thing. HUD’s official site has a search section for neighborhood housing agencies, or you can call 800-569-4287 to use the voice system. Homeowners facing foreclosure might get help for free or for a small charge, based on ability to pay. Any cost will be offered to you.