| With foreclosures at record highs homeowners | | | | go forward. |
| are eager to know how to stop their homes | | | | Many people will resort to filing Chapter 13 |
| from being foreclosed. Bankruptcy is an option, | | | | bankruptcy to stop foreclosure on their home. It |
| but the question still remains, can bankruptcy stop | | | | is very useful in that it will give you a chance to |
| foreclosure? | | | | get your financial house in order by allowing you a |
| The answer is yes. There are different types of | | | | period of time when your creditors will not harass |
| bankruptcy but the one you can file to stop | | | | you. This in turn will let you work out a payment |
| foreclosure on your home is Chapter 13. Chapter | | | | plan, so that you can pay your debtors and |
| 13 bankruptcy petitions will allow you stave off | | | | prevent foreclosure on your home. |
| foreclosure on your home for a limited period of | | | | Before filing Chapter 13 bankruptcy you will need |
| time. | | | | to be aware of an important fact. You will be |
| Chapter 13 bankruptcy will permit you to be able | | | | required to bring to the table some sort of plan |
| to stop foreclosure on your home by means of | | | | to pay your creditors especially your house |
| an "automatic stay." This will come into effect | | | | payments. You will also need to have a job or a |
| soon as you file for Chapter 13 bankruptcy. It | | | | steady source of income. Another important |
| means that all your creditors including the | | | | criterion for filing this type of bankruptcy is the |
| mortgage lenders cannot demand for money or | | | | fact that your debts cannot exceed a certain |
| move against you regarding your debts. This is a | | | | amount. |
| temporary stay but will give you time to try to | | | | For this reason it wise not to procrastinate in |
| work out a solution to your debts and develop a | | | | taking swift action to avoid foreclosure on your |
| plan to pay back creditors. | | | | property. The banks or lending institutions will give |
| Within 15 days of filing for Chapter 13 bankruptcy | | | | you plenty of notice before starting foreclosure |
| the petitioner must come up with a plan to pay | | | | procedures. This is when you should try to assess |
| creditors. Mortgage payments should resume at | | | | your financial situation to save your home. So can |
| this point. If you pay the monthly payments on | | | | bankruptcy stop foreclosure? Yes if you act in a |
| time foreclosure will be stopped. However if you | | | | timely fashion and make a financial plan to repay |
| continue to default in payments the automatic | | | | your debts. |
| stay can be lifted and foreclosure proceedings will | | | | |