How Long Will Chapter 13 Delay Foreclosure?

Declaring bankruptcy is a daunting decision, but it can sometimes be the only way to achieve financial freedom. It’s especially true if you are behind in your mortgage payments. Many borrowers are unable to reach an agreement with their lenders.

Chapter 13 bankruptcy may be the best option if you are at risk of losing a home. If you file Chapter 13 bankruptcy, foreclosure will not occur as you are granted an automatic stay. This means that your creditors cannot recover your collateral or pursue your debts.

You should know the differences between Chapter 7 and Chapter 13, how long you can delay foreclosure, and what will happen if you don’t follow your Chapter 13 repayment schedule.

Even with all the resources available on our website and other websites, bankruptcy filing can be confusing. Contact a Chapter 13 attorney to help you understand the filing process and get answers to all your Chapter 13 foreclosure questions.

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What Is Chapter 13 Bankruptcy?

How do Chapter 7 and Chapter 13 differ? They are both available to individual filers and they are very common. Chapter 7 bankruptcy involves liquidating your assets to pay off unsecured debts such as credit card and medical bills. Most filers don’t lose their assets, despite what it may seem like. This may be the best option for you if your debts are unsecured and you qualify to file under Chapter 7.

Chapter 13 bankruptcy, unlike Chapter 7, combines all of your debts into one repayment plan. The bankruptcy court will assign a trustee to monitor the progress of the debtor. This option is attractive because it allows you to combine both secured and unsecured debts such as your home loan into one repayment plan.

Secured debts are those where the borrower provides collateral, like a car loan. The lender can take the collateral if you do not make payments.

Chapter 13 bankruptcy is a better choice if you have fallen behind on your vehicle or house payments. Chapter 13 bankruptcy can help you manage your debts, even though it doesn’t eliminate them. As with Chapter 7, Chapter 13 will discharge your unsecured debts at the end of the process, making it easier to pay off your car or mortgage payments.

Can Chapter 13 Bankruptcy Stop Foreclosure?

You’re not the only one wondering “How long can Chapter 13 delay a foreclosure?” Here’s an answer to a question we get a lot:

You can stop the foreclosure of your home indefinitely as long as you do not fall behind with your payments under your repayment plan. If you file for Chapter 13 bankruptcy, your home is automatically put on hold. Lenders must wait until the court lifts this automatic stay.

It is important to note that after the bankruptcy process, your lender may foreclose your home. Chapter 13 repayment plans include mortgage payments. However, completing the plan does not mean you have paid off all your debts.

You might be able, through Chapter 13 foreclosure deferment to continue to pay your mortgage in an adjusted plan. However, this is outside of the bankruptcy process, so it’s best to discuss with your lender.

What If I Miss a Chapter 13 Payment?

If you don’t keep up with the repayment plan, your home could be lost. If you default, you will still be responsible for any mortgage debt that is not discharged by Chapter 13 bankruptcy.

You will most likely lose your home if you do not follow your repayment plan after filing Chapter 13 bankruptcy. A default judgment will be declared by the court, allowing your lender to foreclose.

You should contact your appointed trustee if you are at risk of falling behind on your repayment plan. You may be eligible to temporarily suspend or defer your payments.

Contact a Jacksonville Chapter 13 Bankruptcy Lawyer

It’s difficult to navigate the complicated world of bankruptcy, but it doesn’t have to be done alone. An experienced bankruptcy attorney can help you get your finances back on track.

Contact Bruner Wright, P.A. for Chapter 13 bankruptcy lawyers in Jacksonville. If you have questions about how long Chapter 13 will delay foreclosure or any other bankruptcy issues, we can answer them. Call us today at 904-432-1200. or schedule a free consultation to begin your journey to debt freedom.

Call Us Today if You Are Filing for Chapter 13 Bankruptcy

Bruner Wright P.A can help you if your debts are too high. Contact Us or Dial 904-432-1200. We will discuss your situation with you, including the debts that you would pay during Chapter 13 and whether or not a court can discharge your debts.

How Long Will Chapter 13 Delay Foreclosure