QUESTION
WiI a Chapter 13 or Chapter 7 prevent foreclosure?
Asked on Oct 03rd, 2011 on Bankruptcy - Minnesota
2 ANSWERS
William/J Joanis
The 7 will delay it, briefly, the 13 can stop it, if you do everything right. The sooner you get to a lawyer, the better. Timing is critical in this area. Lawyers are able to assist you, but the facts are beyond our control. We have the tools to use the law to your advantage, but we can't help you save the house if you wait too long to see us. In Minnesota the sale date is crucial. On the other hand, the redemption period is long enough that some people choose to take advantage of allowing the foreclosure and staying in the house. You need to focus on your total situation, and a trained third party should able to help.
Answered on Oct 07th, 2011 at 7:31 AM
Bankruptcy Attorney serving Burbank, CA
Partner at
Law Office of Mark J. Markus
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Any bankruptcy chapter will temporarily stop the foreclosure process. The automatic stay goes into effect immediately upon the filing of a case, and acts as an injunction against any further collection activities (including foreclosure) unless and until the bankruptcy court grants permission to proceed.
Chapter 13 allows you to propose a repayment plan to catch up on past due amounts owed on a mortgage. If you propose a viable plan, the bankruptcy court will not authorize the mortgage creditor (if requested by them) to proceed with foreclosure.
Chapter 7 does not allow you to catch up on payments, and the bankruptcy court will likely allow the mortgage creditor to proceed with foreclosure upon proper request (via a Motion for Relief From the Automatic Stay).
Mark J. Markus, Attorney at Law
Handling exclusively bankruptcy law cases in California since 1991.
http://www.bklaw.com/
bankruptcy blog: http://bklaw.com/bankruptcy-blog/
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Answered on Oct 05th, 2011 at 2:03 AM