Could Chapter 13 bankruptcy save your Erie home from foreclosure?

Are you are facing a mortgage foreclosure because you’ve fallen behind on your payments for your Erie home? Is your lender threatening to take your property in a sheriff sale? Luckily, not all hope is lost. If you’ve received a foreclosure notice from your bank, you may still be able to save your home by filing for Chapter 13 bankruptcy. This is because a Chapter 13 can stop foreclosure and allow you to cure your mortgage default before your lender sells your home.

How does Chapter 13 bankruptcy stop foreclosure?

When you file for Chapter 13 bankruptcy, your lender is prohibited from conducting the foreclosure sale. This is because the automatic stay prohibits most creditors, including your mortgage lender, from continuing any collection efforts without further court permission. Basically, this means you still have a chance to save your home as long as it has not already been sold at a foreclosure sale.

How does Chapter 13 bankruptcy help me keep my home?

Filing for Chapter 13 bankruptcy gives you up to five years to bring your mortgage up to date. After filing, you’ll make the regular monthly mortgage payments through the bankruptcy court system along with an additional payment that would bring the mortgage fully current. Once you’ve completed all payments under the plan, you are no longer in default and can keep your home.

Bankruptcy can be more than just a chance for you to get your debts under control. If you make the most of the experience, it can teach you lessons that will improve your financial stability for the rest of your life. If you are facing a mortgage foreclosure, please do not hesitate to give our Steidl and Steinberg office in Erie a call at 800-360-9392. Our office offers a free consultation to review your individual situation to see if Chapter 13 is the best alternative for you.