Is it to late to stop foreclosure

When a bankruptcy case is filed, with few exceptions an “automatic stay” goes into effect.  The stay prevents creditors, including mortgage lenders, from taking any action to collect a debt.  Even if the foreclosure process has already started, it must be stopped.  If you file a Chapter 7 bankruptcy, however, the foreclosure may only be stopped temporarily.  The lender will likely file a motion for relief from the stay.  Such motions are routinely granted by the Courts.  This will allow the lender to start the foreclosure process again.  Usually, the better alternative to deal with a mortgage arrearage is Chapter 13.  A Chapter 13 plan allows an individual or couple with regular income to deal with their debts by making regular payments to a Chapter 13 Trustee over a period of 3 to 5 years.  The plan can cure an arrearage on a home mortgage over a term of up to 60 months, and deal with other short-term debts such as credit cards, car loans, and medical bills.  This can free up funds so that future mortgage payments can be made in a timely manner. Another huge advantage of Chapter 13 is that your attorney fees can be included in the plan, so that the case can be filed without a big upfront expense. Deciding whether to file a bankruptcy case, and if so under what chapter to file, can be complicated.  It is critical to get good advice from a qualified and experienced bankruptcy attorney before making your decision.                 Morgan & Morgan of Athens, Georgia has more than 35 years experience helping homeowners save their homes through Chapter 13.  We offer a free initial consultation with an experienced attorney, NOT a paralegal or assistant, to fully evaluate the client’s options.  Chapter 13 plans can be started with as little as $75 up front.  If you are facing foreclosure, call (706)548-7070 today for an appointment.  For additional information, visit our website at www.morganlawyers.com.