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Does Chapter 13 Really Stop A Foreclosure?

by R.

Hi Stop Foreclosures, I hope you can respond to this. I was recently told by a co-worker that if I tell the foreclosure people that I'll file Chapter 13, that they will back off and leave me alone. So is the Chapter 13 'threat' really be effective for stopping your foreclosure?

Stop Foreclosure Team says:

Hi R.,

Does filing a Chapter 13 really stop foreclosures?

When it comes down to it, if you qualify for a Chapter 13 bankruptcy, yes, foreclosure proceedings will stop. All you need is to contact your mortgage lender with the information of your bankruptcy case and the foreclosure will be stopped.

Remember, though, you can't just tell them that you are filing bankruptcy and expect everything to go away. You have to have actually filed and them mortgage lender will need the correct information from you to confirm this.

However, do not believe that telling your mortgage company that you are filing chapter 13 bankruptcy will "scare them". Believe it or not, your mortgage lender does not want your house. They would much rather prefer that you make payments and continue to pay them the interest that you agreed to.

Therefore, if you file a chapter 13 bankruptcy and they are going to start receiving payments, they could not be happier.

If however you file for a chapter 13 and it is determined by the courts that you cannot afford to do a chapter 13, the foreclosure may be picked back up.

Hope this answers your question!

S.F. Team

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