Will filing for a Chapter 13 stop foreclosure?

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Will filing for a Chapter 13 stop foreclosure?

House is being foreclosed on in about 10 days.

Asked on June 23, 2012 under Bankruptcy Law, Texas


John Turco

Answered 12 years ago | Contributor

This is John Turco, a bankruptcy attorney in Omaha, Nebraska, and my website is found at: www.johnturcolaw.com.  The short answer to your question is YES, a Chapter 13 can certainly stop a foreclosure sale.  Of course, there are always very specific details that need to be considered.  

First, does it make practical sense to stop the sale?  Can your afford the house going forward by making the future mortgage payments on time?  Similarly, is the house worth saving?  So, this is where we start our analysis.  Assuming that the answers to these type of questions are yes....we proceed further.

Second, a Chapter 13 entails making a monthly payment (in addition to your mortgage) to the Chapter 13 Trustee for typically three (3) to five (5) years.  The amount of that payment depends on a lot of factors such as a) the amount of back payments on the house, b) your income, c) back child support or taxes, if any, c) the value of your assets that have equity in them and d) vehicles that you may owe money on that you want to keep.  There are, of course other factors that may come into play but that requires a personal consultation to determine.

Third, whether or not you have file a bankruptcy in the last 8 years or so may have some impact on stopping a foreclosure sale.  As can been seen, there are just a whole lot of issues that we normally ask our clients to quickly determine the qualification status and ultimately, whether or not a Chapter 13 is a good idea or not for them.

Finally, if you are faced with a foreclosure sale, it is absolutely URGENT that you see an experienced bankruptcy attorney as soon as possible.  There are requirements to filing that cannot be done at the last minute.  For example, you are required to take a credit counseling course prior to even qualifying to file.  This course must be fully completed at least one day before filing a case.  There are also some other basic but CRITICAL things you must do.  

John T. Turco & Associates, P.C., L.L.O. will be able to quickly guide you to making the right decision.  

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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