Chapter 13 Bankruptcy and Foreclosure
You fall behind on your mortgage. Maybe you have been denied for a modification or have already done a modification in the past. Once you receive foreclosure paperwork, what are your options?
A Chapter 13 bankruptcy will help you get out of foreclosure. This type of bankruptcy is essentially a consolidation. It pays back your debts, including any mortgage arrears, over 3 to 5 years. Once you file the Chapter 13, you are essentially "current" and the foreclosure lawsuit will be dismissed.
However, you are now responsible for making your mortgage payments again. In order to do a Chapter 13, you must be able to afford your trustee payment (the consolidation payment to the trustee that includes your mortgage arrears) AND your current mortgage payment going forward.
A Chapter 13 bankruptcy payment can also include your vehicle payment, credit cards, medical bills, parking tickets, tollway, IRS debt, and more. You are simplifying by rolling everything into one payment to the bankruptcy trustee every month. Further, there is zero to very little interest charged on your debt, so usually it's more affordable payment than what you're currently paying.
Contact Thurston Law Firm today to see if we can help you stop foreclosure of your home.