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Can a Bankruptcy Stop the Foreclosure on My Home?

Feb. 6, 2023

Absolutely! Is your house about to be sold on the court house steps due to missed payments? If you are behind on your mortgage payments and facing the threat of foreclosure, filing for bankruptcy can provide immediate relief. Having a knowledgeable St. Louis Bankruptcy Attorney is important when helping protect your home!

Upon a bankruptcy filing, the automatic stay goes into effect that prevents creditors from taking any collection action against you.  This filing, for instance, immediately stops the lenders right to foreclose on your home.  Depending on your situation, a bankruptcy may provide you the additional time needed to catch up the payments or provide you an opportunity to catch up the arrearage through a court ordered repayment plan.

Chapter 7 and Chapter 13 are the two types of bankruptcy that can be filed to stop a foreclosure sale.  In a Chapter 7 bankruptcy, the automatic stay will temporarily halt the foreclosure process. This means that you will still be responsible for paying your mortgage, and the lender can resume the foreclosure process after the automatic stay is lifted. Generally, a Chapter 7 only lasts approximately 3 months. 

In most cases, our office will recommend that you file a Chapter 13 Bankruptcy if you are facing the threat of a foreclosure.  In a Chapter 13 bankruptcy, a repayment plan can be proposed that includes your mortgage payments and pay off your mortgage debt over time. This can allow you to keep your home and avoid foreclosure. This is particularly helpful when the reason for falling behind on your mortgage was a period of unemployment.  If you fall too far behind on your mortgage, they may not be willing to let you make it up with payments.  When a mortgage company demands 10 payments need to be paid at once or else, well, often times it just isn’t feasible.  This is where filing for bankruptcy can help. Give my office a call anytime at 314-740-2989 to discuss your options!