If you want to save your house from foreclosure, you will need to catch up on the payments before the lender goes through with the foreclosure. If this is out of the question, you could consider talking to a bankruptcy attorney. A foreclosure attorney can help you file a Chapter 13 case, which stops foreclosure from occurring. Are you ready to learn more about this branch of law? If so, continue reading to learn how this works to stop a foreclosure from taking place.

The Basics of Chapter 13

Chapter 13 bankruptcy is the only branch of bankruptcy that helps you stop a foreclosure. To understand this, you might want to learn a few basic principles of this branch of law. Chapter 13 lets you keep the things you own with the understanding that you must repay your debts. Therefore, the court places you on a repayment plan, which requires making regular payments to the court. The court receives the payments and uses the money to pay your debts. They do this according to the plan your lawyer creates for repayment. Over the course of your plan, you repay your debts, which allows you to keep your assets, including your home.

The Automatic Stay with a Chapter 13 Case

One benefit you receive from filing for bankruptcy is the automatic stay. You can view this as a court order to your creditors that tells them they cannot proceed with debt collection efforts. They cannot call you, text you, or email you. They cannot ask you to pay your debt in any way. Instead, they must accept the payments the bankruptcy court sends them, as the court follows the repayment plan that the creditors received at the start of the case.

How It Stops a Foreclosure

Because of the automatic stay and the basics of Chapter 13 bankruptcy, filing a case stops a foreclosure. The lender cannot pursue you for your debt or continue with the foreclosure. Instead, filing a Chapter 13 case stops a foreclosure instantly. The only way you can lose your house to foreclosure when filing for Chapter 13 is if you stop making your payments.

When you file Chapter 13, you can stop a foreclosure from occurring, plus you can experience other benefits. Are you ready to learn more about this branch of law and the effects it has? If so, talk to a foreclosure attorney today.