Stopping Foreclosures through Bankruptcy: Chapter 7 versus Chapter 13
When a homeowner files for bankruptcy (regardless of the type of bankruptcy), a court injunction known as an automatic stay immediately goes into effect. This automatic stay effectively halts mortgage companies from moving forward with a foreclosure proceeding while the bankruptcy petition is being processed by the court.
From here, however, the type of bankruptcy a person pursues – as well as the details of his financial situation – can impact whether that individual will be able to keep his home. Specifically:
- When pursuing Chapter 7 bankruptcy, people may be able to keep their homes through the bankruptcy process if:
- They are current on their mortgage obligations; and
- The value of the home falls within the applicable bankruptcy homestead exemption.
- When pursuing Chapter 13 bankruptcy, people may be able to keep their homes through the bankruptcy process if:
- They have sufficient income to repay their mortgage arrears through their Chapter 13 repayment plan, a 36-60 month repayment term, and continue to make their post-petition mortgage payments.
Denver Metro Area Bankruptcy Attorneys at Garcia & Gonzales, P.C.
Do you need help stopping a foreclosure? If so, you can trust the experienced Denver bankruptcy attorneys at Garcia & Gonzales, P.C. to provide you with experienced help, honest answers, and the highest quality legal services. With more than 50 years of combined legal experience, our trusted lawyers have the legal knowledge, skills, and insight you can rely on to help you favorably resolve your debt issues and obtain a financial fresh start.
To learn more about your best debt-relief options, as well as how we can help you, contact us today by calling or by emailing us using the drop-down contact form at the top of this page.
When you contact us, you will communicate directly with one of our attorneys, not a paralegal or legal assistant. We welcome Spanish-speaking individuals to contact us also – hablamos Español.