If You Have Received a Foreclosure Summons …

Mortgage lenders issue foreclosure summonses only after a borrower has fallen behind on payments. Their intent is to take ownership of the house and sell it at auction to recover a portion of their loan, leaving you responsible for the balance due (the deficiency) after the sale. If you have received a summons, you have approximately seven months to stop your home from being sold at a foreclosure sale. You should meet with a lawyer to discuss your options as soon as possible.

Stop Foreclosure On A Dime: Chapter 13 Bankruptcy

With a Chapter 13 bankruptcy, you can stop the foreclosure process dead in its tracks. However, if you want to keep your home, you will have to catch up on all of your back payments through a Chapter 13 reorganization plan.

Provided you have a steady source of income, Chapter 13 will allow you to create a manageable monthly payment that combines your current mortgage payments, your back payments (arrears), and any other debts you have. You will have 36 to 60 months to catch up on your mortgage debt through this payment plan.

The longer you wait to file for Chapter 13, the more arrears you will have to pay back. This will lead to a higher monthly payment, and you will have a smaller chance of gaining court approval for your bankruptcy repayment plan.

Chapter 13 is not, however, the right answer for every foreclosure situation. This is why Ledford, Wu & Borges, LLC. offers a variety of mortgage assistance options beyond Chapter 13, including foreclosure defense, mortgage restructuring and short sale assistance.

Speak With A Lawyer to Discuss Your Options

An experienced attorney can help you find out if you will be eligible to use Chapter 13 bankruptcy to stop property foreclosure. You can schedule a free initial consultation with a lawyer at Ledford, Wu & Borges, LLC by calling 312-574-3327 or by contacting our offices online.

Ledford, Wu & Borges, LLC has offices in Downtown Chicago, the South Side of Chicago, Homewood, North Riverside/Berwyn, the Northwest Side and the Southeast Side.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.