Chapter 13 Can Stop Foreclosure!!!

15 Jul Chapter 13 Can Stop Foreclosure!!!

Stop or Go?

The fact that Chapter 13 bankruptcy might stop a foreclosure and save a home is not new news, but it should be in more headlines or at least in more stories about foreclosure problems.

  • If you are facing foreclosure, see an experienced consumer bankruptcy attorney to discuss whether or not filing can help save your house. I can think of no other legal service that I provide that gives me more pleasure than helping save a family’s home.

Using a repayment plan to buy more time to catch up missed mortgage payments is basic bankruptcy law, and perhaps the biggest benefit of filing for Chapter 13repayment bankruptcy.

Since it can help so many people, I just don’t understand why doesn’t the media mention Chapter 13 bankruptcy in every story that they write about the woes of families about to lose their home?

  • Chapter 13 can give people time to catch up missed mortgage/car payments, and also restructure, reduce, or eliminate other types of debts that may have been sucking up the income needed to make the house payments.

I just read another story on AOL Real Estate about a family that had adopted 12 children who had fallen behind on mortgage payments because they were making payments on their former home, which was now rented our.

The woman was quoted as saying that they would be able to make the payments, but their mortgage company was foreclosing due to past due payments of $20,000.00. There was no mention of bankruptcy as an option to help this family. In fact the article sounded as though there was no hope to save this family’s home, despite an ability to pay for the mortgage.

If the family was able to pay the regular payment plus the required cure, there is a good chance that Chapter 13 could help.

A typical payment to cure $20,000.00 would be roughly $500.00 for five years. I don’t know enough about the situation to know if this particular family could afford that, or if there are other debts and factors which would prevent 13 from being a good option for them, but it sure would be worth a mention in any article discussing foreclosure of a family home.

by Susanne Robicsek, Charlotte NC Bankruptcy Attorney

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Concentrating in Consumer Bankruptcy Law since 1988; Wake Forest Law School JD 1987 Law Office of Susanne M. Robicsek since 1993, Law Clerk to Judge Rufus Reynolds, US Bankruptcy Judge for Middle District of NC; Burns Price & Arneke, PA, David Badger and Associates, PA.

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