A homeowner could file to save his house. According to the United States Courts website,”By filing under this chapter, individuals can stop foreclosure proceeding and may cure delinquent mortgage payments over time.” A debtor may get a three-year or five-year bankruptcy plan to reimburse creditors. A borrower must make regular mortgage payments to his lender and all bankruptcy plan payments into some court-appointed trustee. A Chapter 13 filing may offer debt relief through the constitution of a bill-consolidation plan.
Find a bankruptcy lawyer to go over the legal advantages for you of filing a Chapter 13. An attorney can provide details and time lines that pertain to this foreclosure procedure. Your lawyer may file a Chapter 13 bankruptcy to protect your assets and to stop the sale of your house.
Register to get a consumer credit counseling course. A pre-bankruptcy course must gain filing eligibility (see Resources section).
Order a copy of your credit report. Visit the AnnualCreditReport website to obtain a free copy of your credit report from Experian, Equifax or TransUnion. You can request one free copy from each of these providers per year. Present your lawyer with a copy of your credit report. The debts may be included in your Chapter 13 plan.
Gather all of your bills and legal notices. Your lawyer can incorporate these debts within your bankruptcy plan.
Meet with your lawyer to begin your bankruptcy filing. Your lawyer can prepare the forms that are needed to submit a Chapter 13 bankruptcy. The filing creates an”automatic stay” and can help you avoid foreclosure.