If you are facing foreclosure, your biggest concern right now is how to save your home. Nothing else really matters. You are facing an uphill battle, but it is not impossible to stop foreclosure. Filing for chapter thirteen bankruptcy is last resort way to keep from losing your home.

As soon as you file, the foreclosure must be stayed and the bank cannot pursue any further collection action until the bankruptcy is dealt with. This allows you to come up with a plan to save your home by offering a modified schedule for paying your debts. The plan does not have to cover all of your unsecured debts, but it does have to get the approval of a bankruptcy judge before it can go into effect.

You can’t file for bankruptcy until after you have completed credit counseling. This requirement serves the purpose of making sure that bankruptcy is really the only way you will be able to pay off your debts. The credit counseling company will work with you try to come up with a way for you to repay your debts without bankruptcy. Their proposed plan must be submitted when you file.

Your repayment plan must be submitted to the court within fourteen days from the date you file your bankruptcy papers. Most likely, your lawyer will submit your paperwork for you and will do it all at the same time. Sometimes the plan will be filed later so that you can have an earlier filing date so you can get the foreclosure process stopped and give yourself a little more time to prepare the plan.

You will be required to attend a creditor’s meeting, and all of the companies and people you owe money will have a chance to ask you questions. The purpose of this meeting is to give your creditors a chance to object if they do not feel you will be paying as much as you possibly could under the proposed plan.

Once your creditors have had a chance to object to the provisions of your plan, the judge will review it and make a decision. If your repayment plan is approved, you will have to make bimonthly or monthly payments to the court’s trustee. The money will then be distributed to your creditors according to the plan.

If you are able to stick to the repayment plan, chapter thirteen bankruptcy can stop foreclosure and save your home. However, if you default on the agreement, the court can convert your case to a chapter seven bankruptcy and sell off your assets to pay your debts. Because of the pros and cons involved with this plan, it is important to discuss this option with an experienced loan modification attorney before filing bankruptcy.

For assistance with loan modification contact a qualified loan modification attorney that will look out for you and your family’s best interest such as Janian and Associates.

Some people think about the decision to file bankruptcy or simply allow the mortgage lender to start foreclosure. It can’t be presumed to be a simple case of either/or as a verdict is not possible and cannot be made this easily. If you don’t pay your mortgage, the lender can initiate foreclosure proceedings. The only way of changing this is to make the payment to the mortgage lender. A mortgage loan is sort of like a car loan and if a person does not pay his car payment, his car will be repossessed. The rule is same for all and is applicable to any person not paying his mortgage payments – they will have to forgo the residence through foreclosure.

A legal action filed by somebody who is unable to pay his debts is called as bankruptcy. If the debtor is in bankruptcy then all the civil proceedings to collect debts are stopped. A mortgage lender must stop all legal actions, including foreclosure proceedings. The mortgage lender can apply for relief from the automatic stay. When it is granted, then the lender can proceed with the foreclosure. Declaring bankruptcy will not halt foreclosure and you still must repay your loan. Bankruptcy may make your financial problems easier to handle, but it will not make them completely go away.

Bankruptcy can help give a person the needed time, and sometimes make it easier to pay their mortgage lender. It will not, however, stop foreclosure should they still not be able to pay. Because of the fact that in a situation of bankruptcy, a mortgage lender will have to suspend a foreclosure action, the debtor has some time to raise the money and catch up. Discharging unsecured debts through bankruptcy may enable you to have more money to pay the mortgage payments.

If you’ve looked at all other options, don’t just give up your home. Consider filing bankruptcy and give yourself a chance to pay back your debts – on your time schedule. A Chapter 13 bankruptcy is a court ordered payment plan and allows a debtor to pay the mortgage catch up amount over a period of time.

Sadly, not every person will be eligible for bankruptcy, and even if they are found eligible, there are still legal costs that will need to be paid. The legal costs and fees may be more than the amount needed to catch up and make current mortgage payments. If you are thinking that declaring bankruptcy may benefit your situation and help you get out of a foreclosure, a good lawyer should be able to answer your questions. Bankruptcy is so detailed that you should not try to handle it by yourself.