How You Can Stop a Foreclosure by Filing for Bankruptcy

 

When you go through a foreclosure, it's important to remember that there are resources available for you. One of the most important steps that you can take is seeking bankruptcy help. In this article, we'll discuss two different types of bankruptcies that are available to stop foreclosures. Read on to learn more about Chapter 13 and Chapter 11 bankruptcies, as well as what an Automatic Stay does, so you can make the most informed decision possible. 

Chapter 13 bankruptcy can be an option for people who are at risk of foreclosure but do not want to lose their property. In this case, you would make monthly payments to your trustee to repay your debts over three or five years with interest rates usually capped at around 18%. If you complete all payments on time and maintain current credit obligations, then any remaining debt will be discharged after the repayment period ends. Chapter 13 is the best choice for qualifying individuals and sole proprietors. 

The automatic stay is a document that is created immediately upon the filing of your Chapter 13 bankruptcy case. The automatic stay prevents creditors from seizing property, garnishing wages, foreclosing on mortgages, repossessing cars or other personal property, and starting or continuing lawsuits. In some cases where there are co-debtors who are liable for the same debt as the debtor, they also receive protection against creditor collection efforts without court authorization after filing for relief under Chapter 13. 

It's also possible to stop foreclosure by filing Chapter 11 bankruptcy. This is known as a "reorganization" bankruptcy because it requires the reorganization of a debtor's business affairs, debts, and all other assets. Filing for Chapter 11 bankruptcy is a more extreme option, but it is effective when it comes to stopping foreclosure. Chapter 11 is usually used with larger corporations and financial institutions. 

If you are considering bankruptcy, it is important to consult debt help professionals before moving ahead. If you need some guidance or advice before taking any official steps, contact us to speak with one of our knowledgeable attorneys today at (850) 913-9110 or visit lewisandjurnovoy.com. 

Lewis and Jurnovoy is a local law office serving the Florida Panhandle. We specialize in bankruptcy law, including Chapter 7 and Chapter 13 bankruptcy. We will work to achieve the best financial remedy for your outstanding debts. 

Lewis & Jurnovoy PCB
2714 West 15th St
Panama City, FL 32401
(850) 913-9110
https://www.LewisandJurnovoy.com