Tuesday, October 11, 2011

Can chapter 13 help save my home from foreclosure?

One of the biggest tools that homeowners have to fight off a foreclosure is by filing for Chapter 13 Bankruptcy Protection.

As long as a case is filed before the actual foreclosure date and time (even if filed minutes before), the Chapter 13 bankruptcy automatic stay will put an immediate stop to the foreclosure sale.

Once the bankruptcy is filed, the homeowner will be given the opportunity to "cure" or catch-up on the past due payments over a 36-60 month period. As long as the debtor makes the current and ongoing mortgage payments, and their chapter 13 re-organization payments the home will remain safe from foreclosure.

Also by filing Chapter 13 in Oregon a homeowner may be able to eliminate their second mortgage if the value of the home is less than what is owed on the first mortgage.  If there are more than two mortgages a homeowner may also be able to get rid of those.

Chapter 13 is also a good way to deal with judgment liens that may be attached on the home by debt collectors. Chapter 13 will also offer a way to catch-up on any past due property taxes.

If you are a homeowner who is facing a foreclosure it may be time to talk to an experienced Chapter 13 bankruptcy attorney in your area. For information on Oregon and SW Washington chapter 13 cases, please visit www.pacificbankruptcy.com or call us for a free consultation at 503-352-3690.