Facing foreclosure raises urgent questions about whether bankruptcy can help you keep your home. The timing of a bankruptcy filing in relation to the foreclosure process is a key factor. Chapter 13 can address past due mortgage payments in a repayment plan.
Frequently Asked Questions
Will filing bankruptcy stop a foreclosure on my house?
It’s dependent on where the foreclosure process is when you file the bankruptcy. The most important thing if you’re seeking to stop a foreclosure is that your bankruptcy is filed before a judicial sale or foreclosure sale takes place. Once a judicial or foreclosure sale takes place, the bankruptcy will not stop the foreclosure from moving forward.
When your bankruptcy is filed before any judicial sale or foreclosure sale, the Chapter 13 will actually take any arrearage, which is the past due portion of your mortgage, and build it into the payment plan that you have in a Chapter 13 bankruptcy. And that will prevent the foreclosure from moving forward as long as you maintain your Chapter 13 payments.
Are you struggling financially? Pratt & Maegli Law Firm in Rockford helps Illinois families and individuals explore Chapter 7 and Chapter 13 options with clear answers and a personal approach. Call (815) 315-0683 or visit rockfordbankruptcytoday.com to schedule a confidential consultation and take the first step toward real financial relief.