Which bankruptcy process can stop foreclosure?

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Individuals facing foreclosure can be worried about the future. They are unsure of where they will shelter their family. Foreclosure of one’s home can be a scary reality to face. A house becomes a home. It has sentimental value. It could be a place that has been in your family for generations, somewhere you lived your whole life or a place where you intended to start over. If you are facing this harsh reality, you may be able to stop it. By filing for Chapter 13 bankruptcy, you may be able to stop foreclosure on your house.

What does Chapter 13 bankruptcy include?

Before filing for Chapter 13 bankruptcy, there are some prerequisites you must complete. To qualify for this bankruptcy process, you will need to receive credit counseling within 180 days before filing. If a previous petition was dismissed within the 180 days, you cannot file again. Once you file for bankruptcy, you should also file documents that include a list of liabilities, assets and property, a statement of financial affairs, a list of executory contracts and unexpired leases, proof of credit counseling and any plan developed to handle the matter, income payments within 60 days prior to filing, monthly net income and any indication in a rise of income or expenditures and interests the debtor has in state or federally-qualified education or tuition accounts. Chapter 13 bankruptcy is useful for individuals. They may be able to improve their current situation so that they can have a better future financially.

When does the automatic stay go into effect?

The automatic stay is a part of the bankruptcy process that can be beneficial. It protects debtors from the harassment of creditors. Once all the paperwork is filed for the bankruptcy process, the automatic stay goes into effect. This will bar any creditors from contacting the debtor in regards to money they owe. With this in effect, debtors can focus on other aspects of their bankruptcy. They do not have to deal with creditors in that forum. Instead, they can work with their attorney to resolve their issues. This can help to limit stress that they have about the situation. Without the added stress of creditors, individuals can have space to themselves to breathe and make further decisions.

If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options.