Foreclosures: Chapter 13 vs. Chapter 7
Stopping a foreclosure sale is usually done with the filing of a chapter 13 bankruptcy. This is a plan that would that would put whatever payments that you have fallen behind on in a plan to pay back over the next five years. The mortgage company has to accept this option. The following month you need to continue to make the normal house payments.
If you’re not wanting the home, then the choice would be to file a chapter 7 bankruptcy. This is not a plan — it would surrenderer the home back to the mortgage company and you would need to move out of the home in the next couple of months. With this choice you will never again make a house payment on that home, Or be responsible for any negativity from the sale of the home for any lesser amount or a 1099 from the mortgage company for the interest they lost because of you not making your monthly payment over the length of the contract.
If you have receive any kind notice of the foreclosure sale you should talk to a bankruptcy attorney as quickly as possible.
Denver Bankruptcy
Florida Bankruptcy Lawyer
Dallas Bankruptcy Attorney
Please fill out our free evaluation form to determine if bankruptcy is right for you.
