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Stop foreclosure with a Chapter 13 bankruptcy

People who fall on hard times in Illinois may find it difficult to keep up with extensive medical bills, credit card debt and other expenses. When homeowners fall too far behind on making their monthly mortgage payments, however, they could run the risk of losing their homes. Not only is it overwhelming to have a home taken away while in the midst of severe debt, but it can be extremely difficult for people to find a new place to live once they have a foreclosure on their record. After a number of mortgage payments are missed, the bank may try to foreclose on the home, or repossess it. While there are several options for people who are worried about losing their home, filing for Chapter 13 offers one possible solution.

Chapter 13 bankruptcy is designed to organize a homeowner’s debts into a simple repayment plan, according to NBC News. This allows homeowners to continue making payments on and ultimately keep their homes. In some cases, lenders will no longer accept mortgage payments from the homeowner once they become delinquent on their mortgage. After filing for Chapter 13, however, lenders must accept any mortgage payments that are given to them.

Once the bankruptcy documents are filed with the court, any foreclosure proceedings that have started are immediately stopped, as reported by the United States Courts. Not only does this give the debtor relief from the stress of an impending foreclosure, but it also stops any harassing creditors from calling regarding other unpaid expenses or bills. 

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