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Bankruptcy - Stop Home Foreclosure
Both Chapter 7 bankruptcy and Chapter 13 bankruptcy offer protections for homeowners. However, if you are significantly behind on your mortgage payments and facing foreclosure, only Chapter 13 bankruptcy will allow you to save your home.Chapter 7 Bankruptcy and Home Foreclosure
If you are in debt but current on your mortgage payments, you can keep your home by filing Chapter 7 bankruptcy. Filing Chapter 7 bankruptcy will also put a temporary stop to a home foreclosure. However, if you are behind on your payments, the mortgage company can ask the bankruptcy trustee to proceed with the foreclosure and liquidate your property immediately after your case is filed.
In Colorado, you are allowed to keep up to $60,000 in equity in homestead property (up to $90,000 if you are over 60). You would be entitled to this equity after your property is sold.
Chapter 13 Bankruptcy and Home Foreclosure
The Burnham Law Firm, PLLC can stop foreclosure of a home by filing a Chapter 13 bankruptcy. As long as we can file your bankruptcy petition at least a day before your home foreclosure is scheduled, we can keep you in your home.
You would have to be able to pay enough money into a Chapter 13 bankruptcy plan to cure the arrearage over a five-year period. You would also be required to resume making monthly mortgage payments after your case is filed.
In addition to homes, you can put other types of real estate and assets into a Chapter 13 payment plan.
OTHER OPTIONS:
You have other options available to you in addition to bankruptcy…bankruptcy is not the only option. Don’t fall into the trap that believing that this is your only option available to save your home from foreclosure. Other options include:
• Temporarily reducing or waiving payments.
• Setting up short-term repayment plans to help you make up the deficit.
• Adding the unpaid balance to the principal of your loan and increasing your payments
slightly to cover the extra amount.
• Deed in-lieu of foreclosure
• Sell the home
• Allow the foreclosure and stay in your home in the interim
Please go to www.burnhamlaw.com for a full overview of the firm and the services provided in both New York and Colorado.