Chapter 13
Stop Foreclosure
Chapter 13 can be a great financial tool to help you stop creditor actions that threaten your family and your way of life. The minute you file Chapter 13, a legal protection called the “Automatic Stay” comes into existence and, by law, all creditor action must stop.
Chapter 13 Bankruptcy puts an immediate stop to foreclosure and allows you to take up to 5 years to pay back your missed mortgage payments and other debts. Chapter 13 can also stop repossessions, lawsuits, and garnishments. In many cases, you can wipe out some or all of your credit card debt as well.
The types of creditor actions that must cease include:
- Foreclosures
- Repossessions
- Wage garnishments
- Harassing calls from bill collectors
- Collection letters
In order to qualify for Chapter 13, you must have a regular source of income, preferably in the form of a steady paycheck. Your Clark & Washington attorney will evaluate your income and expenses and calculate a repayment plan that will meet the approval of the Chapter 13 trustee and your bankruptcy judge. Once this plan is in place, you will remain protected from all creditor action while you fund your repayment plan. Chapter 13 plans typically last five years.
Chapter 13 can be a good choice if you want to keep your home, cars, and personal property, but you need time and better payment terms.