Understanding Bankruptcy 12/17/2021

Question: Should I file a bankruptcy to delay my foreclosure?

If you fall behind on your mortgage payments, you may be at risk for foreclosure. If you are facing foreclosure, bankruptcy may help. Once you file either a Chapter 7 or Chapter 13 bankruptcy, the court will issue an automatic stay. This causes creditors to cease collection from you immediately.

By filing a Chapter 7 bankruptcy, you can buy yourself some time because the sale will be legally postponed due to the automatic stay. However, after a few months, the lender will file a motion to lift the automatic stay. At that point, the sale will go forward and you will lose your home.

If you would like to keep your home, then filing a Chapter 13 bankruptcy is a better option. This allows you to pay off the late unpaid payments over a repayment plan, however, you will need enough money to make your current mortgage payment as well as the payment plan amount. If you make all payments throughout the payment plan, you can avoid foreclosure and keep your home.

Ultimately, bankruptcy can delay and even stop foreclosure on your home.

Cibik & Cataldo, P.C.
1500 Walnut Street, Suite 900
Philadelphia, PA 19102
Tel: (215) 735-1060
Direct: (215) 557-9001

Michael A. Cibik, Esquire
www.ccpclaw.com

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