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Can I Use Bankruptcy to Stop Foreclosure and get Caught up on Delinquent Mortgage Payments?
We have been struggling trying to balance credit card bills and our mortgage payment for over a year now, but both my husband and I have had to take reductions in income and have since fallen behind on our mortgage.
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Yes, bankruptcy is often used as a defense to foreclosure, but it is not always a permanent solution. When you file for bankruptcy, all creditor collection attempts, including foreclosure lawsuits, are automatically “stayed”. However, you lender will likely motion for the stay to be lifted, especially if you’ve fallen significantly behind in your mortgage payments.
You should talk to a bankruptcy lawyer immediately about your legal rights and options under bankruptcy law. If you elect to file a chapter 13 bankruptcy, then your attorney may be able to leverage the bankruptcy laws to force your lender to accept a modified loan term so that you can get caught up on your delinquent payments and get back on track.
Additionally, you should be able to eliminate most, if not all of your credit card debt. This will free up a lot of your income to focus on paying more important bills such as your mortgage and your car payment(s).
Talk to a Bankruptcy Lawyer to find out how bankruptcy can help you stop foreclosure and get into a more affordable loan.
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Posted by Domenica Ginocchio on 02 Apr 2010
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