SCHREIBER LAW OFFICE, LLC
MINNESOTA BANKRUPTCY LAW FIRM
STOP THE FORECLOSURE NOW
HOW DOES IT WORK?
Bankruptcy is a very powerful tool to stop a foreclosure and give you an opportunity to breathe.
In addition, with a chapter 13 bankruptcy you have up to 5 years to repay any past due amounts.
A foreclosure process is started by the mortgage company after missed house payments. A foreclosure sale, or even
the threat of a foreclosure, can be intimidating for a homeowner. To cancel the foreclosure, the mortgage
company usually demands that ALL the mortgage arrears be paid in full. That is often an unrealistic amount.
However, once a bankruptcy is filed any foreclosure proceedings must be halted immediately under the bankruptcy
code’s automatic stay. In fact, most law firms executing a foreclosure sale (also called a sheriff sale) will check for
a bankruptcy the morning of the scheduled sale, just to make sure a bankruptcy has not been filed.
When a chapter 13 bankruptcy is filed, a court-appointed trustee is assigned to the case. Payments on the
mortgage arrears are made by the homeowner to the trustee until caught up. The trustee forwards that money
each month to the mortgage company. You have up to 5 years to make these payments and bring the mortgage
current. And of course, you can stay in your house during this time, as you are still the owner.
With the foreclosure cancelled, there is now time to regroup and reorganize.
There are some exceptions that may limit the ability to stop a foreclosure, including if there has been a previous
bankruptcy that was pending during the last 12 months. Every situation is unique, and the best way to find out
how a chapter 13 can save your home and stop a foreclosure is to contact an experienced attorney.
If you are facing a
automatically cancels the
We are a debt relief agency and help people file for relief under the Bankruptcy Code.