One of the most important reasons you may want to consider filing a Chapter 13 bankruptcy is it will halt the foreclosure of your home and will allow you three to five years to get caught up on all of your back payments through a structured repayment plan.
Bankruptcy and Foreclosure – Automatic Stay that will Temporarily Stop Foreclosure
When you file and declare a Chapter 13 bankruptcy or file and declare for a Chapter 7 bankruptcy, the court will automatically Order for Relief with a provision for an automatic stay. The automatic stay will stop the creditors you have listed in your bankruptcy petition from collecting on the debts you owe them.
Chapter 13 Bankruptcy to Prevent Foreclosure
A Chapter 13 bankruptcy is intended to combine bills and reimburse your creditors the debt that you owe them. To prevent losing your home, your Chapter 13 bankruptcy petition must be filed before a sheriff’s sale, or you will not be able to reestablish your mortgage. When filing before a sheriff’s sale, you might be able to remedy your mortgage arrearages over a period of years under a chapter 13 bankruptcy repayment plan.
The King Law Firm has been helping North Carolinians for over 30 years. Our experienced attorneys and staff can help guide you through the complications of filing for bankruptcy. Contact our office today at (800) 635-1683 to schedule a consultation