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Chapter 13 bankruptcy can stop foreclosure.

Writer's picture: Bankruptcy LawyerBankruptcy Lawyer

Does chapter 13 bankruptcy stop foreclosure? The general rule is, yes. The way it works is that your bankruptcy filing serves as a prohibition from all collection activity, including foreclosure. You would then pay back the past due mortgage payments and the current monthly mortgage payments and the trustees fee and the attorneys fees over a period of time. The length of the chapter 13 payment plan can not be longer than 60 months, which is 5 years. You would need to have sufficient disposable income to fund the plan. One of the most important parts of a chapter 13 payment plan is that your monthly payments be made, and that they be made in full and on time. Otherwise your case can be dismissed.

The Rashid Law Firm Is a bankruptcy law firm in Houston, Texas. The initial consultation is free. Call us now.

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