Foreclosure can be a scary prospect for homeowners, but by Chapter 13 you can stop Foreclosure. Want to know how, Here you can read it out. Visit: https://bit.ly/2FTGcKD

1. Can Bankruptcy Stop
a Foreclosure?

2. What is a Foreclosure?
 It is the legal process in which the lender
goes for a sale of the borrower’s assets if the
borrower fails to pay back the loan amount to
the lender.
 The asset is then auctioned by the lender in
order to recover the amount of the loan.
 The auction is conducted by the lender either
by the order of the court or by the provisions
of the law.

3.  Bankruptcy can help a person file for a pause
on the foreclosure.
 Filing for a bankruptcy puts an automatic
stay on the foreclosure process.
 This protection generally allows the debtor a
break from persistent communication and
collection efforts from most creditors,
including mortgage lenders.
 The automatic stay provision provides a little
breathing space until a new repayment plan
is made and passed by the court.
The Automatic Stay Provision

4.  There are basically two chapters in the United States Federal Law which helps a
person to file for bankruptcy in order to stop a foreclosure.
 They are as follows:
The Two Chapters:
Chapter
7
Chapter
13

5.  A chapter 7 bankruptcy case does not involve the
filing of a plan of repayment as in chapter 13.
 Instead, the bankruptcy trustee gathers and sells the
debtor's nonexempt assets and uses the proceeds of
such assets to pay holders of claims (creditors) in
accordance with the provisions of the Bankruptcy
Code.
 Part of the debtor's property may be subject to liens
and mortgages that pledge the property to other
creditors.
 In addition, the Bankruptcy Code will allow the
debtor to keep certain "exempt" property; but a
trustee will liquidate the debtor's remaining assets.
 Accordingly, potential debtors should realize that the
filing of a petition under chapter 7 may result in the
loss of property.
Chapter 7:

6. Chapter 7 Process:
• Get
mandatory
credit
counseling
Step 1
• File your
petition and
other forms
Step 2 • The trustee
takes over
Step 3
• The meeting
of creditors
takes place
Step 4 • Your eligibility
to file for
Chapter 7 is
confirmed.
Step 5

7. • Nonexempt
property is
handled
Step 6
• Secured
debts are
dealt with
Step 7 • Take a
financial
management
course
Step 8
• You receive
your
discharge
Step 9 • Case closed.
Step 10
Chapter 7 Process:

8. Chapter 13:
• According to Chapter 13 of the United States
Federal Law, If you are in foreclosure when you file
for Chapter 13 bankruptcy, bankruptcy's automatic
stay stops the foreclosure.
• If you stay current on your mortgage payments, and
make up the arrears through your Chapter 13 plan,
the lender cannot foreclose.
• If you want to keep your home, you'll have to pay
back all of your mortgage arrears by the end of the
repayment period.
• This gives you three to five years to make up the
arrears.
• This feature of Chapter 13 is one reason why many
people facing foreclosure opt for Chapter 13 over
Chapter 7 bankruptcy.

9. How Chapter 13 works?
You complete your
official bankruptcy
paperwork and
take a pre-
filing credit
counseling
course.
You file for
Chapter 13
bankruptcy.
The automatic
stay takes effect. It
bars most
creditors from
taking any actions
to collect what
you owe.
The court
appoints a trustee
to oversee your
case. You will
receive a Notice of
Appointment of
Trustee from the
court.
The court sends
you and your
creditors a Notice
of Chapter 13
Case

10. How Chapter 13 works?
Creditors can file
written objections
to your plan.
You provide your
most recent tax
return and other
documents to the
trustee. The trustee
might require other
documents, as well.
You begin making
payments under
your repayment
plan. (If your plan is
never approved, the
trustee will return
your money, less
administrative
costs.)
You attend
the meeting of
creditors, where the
trustee and any
creditors who show
up can ask you
about information in
your papers.
You file a modified
plan if necessary.
It’s common to
amend (change) a
Chapter 13 plan in
response to an
objection by the
trustee or a creditor.

11. How Chapter 13 works?
You or your attorney
attend the confirmation
hearing, where the
court addresses any
objections raised by
creditors or the trustee
and decides whether to
confirm (approve) your
repayment plan.
The trustee sends you
periodic statements
showing:
the claims filed and for
how much
how much money has
been paid to each
creditor, and the
balance due each
creditor.
You give the trustee
annual income and
expense statements.
You file
a Certificate showing
that you completed
a course in personal
financial management.
The court grants your
discharge.

12. Steps to follow in bankruptcy:
Try modifying your
mortgage
Look at the bigger
picture
Think twice before
going for filing for
bankruptcy
Hire a Bankruptcy
attorney
Speak to consultant

13. For more information about how to file for bankruptcy in order to stop a foreclosure,
Visit us at: www.consumerproponents.org