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Bankruptcy, Foreclosure, Chapter 13

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My house is set to be foreclosed-what can I do to stop it?
Losing your home can be a frightening reality that requires a good plan of action to fix. Keep in mind that most lenders would prefer to keep you in the home if there is a chance that you will remain current on the mortgage moving forward. However, if your attempts at working out a loan modification or other arrangements with the lender have failed, there are still other options available to you to possibly save your home.

Typically a Chapter 7 liquidation filing will not help you actually keep anything you are already behind on. A Chapter 13 will however permit you to keep an asset by spreading out over time what you are behind on, so long as you can maintain the monthly payment moving forward.

Filing a Chapter 13 bankruptcy generally will immediately stay a pending foreclosure, even if it was filed only one minute prior to the sale! The next issue to consider will be making sure you have a plan to catch up your past due payments on your home-A Chapter 13 includes a proposed "Plan" that must be feasible and confirmed by the Court.

This Plan distributes your monthly disposable income left over after your essential expenses are paid, and is set up to pay back your secured creditors over the term of the Plan and pay your unsecured debt a certain percentage pro rata share of whatever monies are left over, if any. Upon the completion of your plan period (either 36 or 60 months, depending on what you qualify for), the remaining unsecured debt you owe will be discharged.

Always consider carefully if you can realistically afford the home you are in. So long as you can stay current with the monthly mortgage from the time you file for Chapter 13 protection, the Bankruptcy Court will usually permit you to prorate or spread out over the term of the Plan any past due amounts on your mortgage so that the arrears are more manageable for you to pay off. The same is true for a vehicle creditor who is seeking to repossess your car. Please consult Mills & Hoopes, LLC for a personalized and individual consultation as to your specific situation.

Steve Mills is the managing partner in the law firm of Mills & Hoopes, LLC, in Lawrenceville, Georgia. For more information on our legal services or your legal needs in areas such as contractual matters, litigation, commercial real estate, immigration, environmental matters, wills, divorce and family matters, personal injury, collections, small claims, landlord tenant or any criminal matters, please visit out website www.millshoopeslaw.com 

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