Foreclosure and bankruptcy attorneys can help you sort through foreclosure problems. Falling behind on mortgage payments then receiving notice of foreclosure is one of the most frightening things anyone can experience.  Many families love their home as a sanctuary.  Losing it is devastating.  Some families have considerable equity in their homes and do not want to lose this. Foreclosure is one of the main reasons people file Chapter 13 bankruptcy.

All Else Has Failed:

When loan modifications fail and short sales are not the right answer, Chapter 13 bankruptcy will generally succeed.  In Chapter 13 bankruptcy, your lender forcibly accepts late mortgage payments. The three to five year repayment plan includes the late amounts. This repayment plan is created by the court.  Once you have completed the repayment plan, your lender cannot re-initiate the foreclosure action.  In short, you can save your home from foreclosure through Chapter 13 bankruptcy.

Chapter 13 Bankruptcy Stops Foreclosure:

When you file for Chapter 13 bankruptcy, you will benefit from a federal law that prevents creditors from continuing any collection efforts.  This includes the continuation of foreclosure proceedings.  Accordingly, if your home is set to be foreclosed on Wednesday and you file on Tuesday, the foreclosure would not proceed.  This halting action is specified in Section 362 of the U.S. Bankruptcy Code.  If you are facing foreclosure, consult with a bankruptcy attorney to find out more information on halting the proceedings with Chapter 13.

Chapter 13 Bankruptcy Can Save Your Home:

There is a common misconception that you will lose your home if you declare bankruptcy.  In Chapter 7 bankruptcy, this statement is often accurate.  If you default on your mortgage and file for Chapter 7 bankruptcy, while the foreclosure will initially be halted, it will generally be able to continue. This is because Chapter 7 doesn’t provide debtors the chance to repay what late.  After a Chapter 7 is completed, the mortgage will still be in default. Because of this the lender is still be able to look to the secured asset, the home, for repayment.

In a Chapter 13 bankruptcy, however, debtors are able to repay their mortgage arrears in a three to five year repayment plan.  The debtor and his or her attorney develop a repayment plan for the court and the creditors to approve.  After the mortgage holder receives the late mortgage payments through the three to five year repayment plan, the debtor is no longer in default of the mortgage and the lender cannot re-initiate foreclosure proceedings.  The debtor can continue paying off the mortgage as scheduled and is free to enjoy their home while building equity in it.

Anyone facing foreclosure should consult with our Tulsa Oklahoma bankruptcy and Foreclosure attorneys as soon as possible to explore your rights and legal options.

Contact Our Foreclosure and Bankruptcy Attorneys:

If you’re facing foreclosure the Tulsa Bankruptcy Attorneys at South Tulsa Bankruptcy Law Office can help.  Through legal experience in Chapter 13 bankruptcy, we evaluate whether this is a viable option to save your home.  When you come into our office, we’ll evaluate your debts  and provide an accurate picture of your options.  We’ll never push you towards bankruptcy and always explain the full range of options.  Call our foreclosure and bankruptcy attorneys at South Tulsa Bankruptcy Law Office today at 918-739-8984 to schedule your free consultation.