Chapter 13 Bankruptcy Plan to Stop Foreclosure

A brief explanation of how a chapter 13 bankruptcy can stop a trustee sale

(855) 257-7671 or (855) BK.PROS1 | [email protected]

Bankruptcy Law Professionals Copyright 2012, All Rights Reserved.

Your Foreclosure Status1. Past Due – Have not made a payment for 30 days or

more

2. Notice of Default – Have not made a payment for 90 days or more

3. Foreclosure Sale Date or Trustee Sale Date – Have not made a payment for 180 days

Bankruptcy Law Professionals Copyright 2012, All Rights Reserved | (855) 257-7671 | www.bankruptcylawpros.com

What Does Filing a Chapter 13 Do for Your Foreclosure?

1. Stops all foreclosure proceedings2. Stops all collections activities3. Puts you under bankruptcy protection for all debts included in the

bankruptcy petition4. Puts you in a payment plan to pay back past due mortgage debt in a 3

to 5 year repayment plan5. Puts you under an automatic stay throughout the duration of the

repayment plan

Bankruptcy Protection: Bankruptcy protection is the time period when you are in an active bankruptcy. Your home CANNOT be sold in foreclosure while under bankruptcy protection.


A Chapter 13 Repayment Plan in More Detail

1. The repayment plan will repay ALL of the past due debt within the 3 to 5 years of payments

2. The mortgage will be brought back up to current status

3. Throughout the repayment plan, the client is also responsible for the normal monthly mortgage payments along with the repayment plan payments

Chapter 13 Repayment Plan: A plan to repay the past due debt of your mortgage to bring your mortgage status back to current


What Happens After the Chapter 13 Repayment Plan is

Complete?

1. The mortgage is back to current status

2. Past due mortgage debt is eliminated through the repayment plan

3. Mortgage payments are now back to only the normal mortgage payments that were agreed in the original contract

4. Bankruptcy protection ends



Mortgage is back to current - Client makes regular mortgage payments - Bankruptcy protection ends

Payment plan is completed and Chapter 13 is discharged

Mortgage repayment plan proceeds for 3 to 5 year repayment plan for past due payments and normal mortgage payments

Chapter 13 bankruptcy petition filed in court

Foreclosure in process

(855) 257-7671 or (855) [email protected]

Bankruptcy Law Professionals Copyright 2012, All Rights Reserved.

Business

Chapter 13 Bankruptcy Plan to Stop Foreclosure