Foreclosure

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Can bankruptcy stop foreclosure? Yes it can.  Don't lose your home to Foreclosure. If you have income from a job, receive Social Security or other forms of income, a Chapter 13 Bankruptcy may save your home. 

Generally, foreclosure starts when a person is not able to pay their monthly mortgage payments and their lender begins the process of reclaiming ownership of the property. Fortunately, the bank is not allowed to simply take the home back as soon you default on your loan. Instead, the bank must follow various legal steps in order to regain ownership. This process is called foreclosure.

My clients call and ask my "Can you save my home from foreclosure."  Yes we can. If you are being foreclosed upon by your lender, we  may be able to help stop the process by filing bankruptcy. If you file Chapter 7 you may be able to slow down the foreclosure process until your Chapter 7 case completes and discharges, which process takes about 3 month.  Afterwards, the Lender can resume foreclosure proceedings.  However, by filing Chapter 13 you may be able to save your home and stop the foreclosure process altogether by structuring a Court approved repayment plan.

Including your home in a bankruptcy process is very complicated. To see if this is the right option for you, contact us to speak to our Richmond foreclosure lawyer.

Unlike Chapter 7 bankruptcy, which may require you to sell your home to repay your creditors (if you have equity), Chapter 13 may allow you to keep your home and work out a repayment arrangement with your lender.

• You may be able to include back mortgage payments (arrears) in the bankruptcy and repay them over time.
• You may be able to eliminate second and third mortgages completely.
• Foreclosure actions must stop when you file Chapter 13