Chapter 13

Stop Foreclosures and Save Your Home

Foreclosures can be stopped by:

1. Negotiating a forbearance agreement - I can work with your lender to put you on a plan that will allow you to pay back the mortgage arrearage over a one year term. Forbearance usually requires 50% to be paid up front.  

2. Chapter 13 Bankruptcy - Chapter 13 allows you to stop the foreclosure, resume your normal monthly payment and repay the arrearages over a term of 3-5 years.  

3. Connecticut Laws - Connecticut Law can be used to protect unemployed or  underemployed residents from loss of their home.

Bankruptcy can help you:
 
1. Save your home  

2. Stop Harassing calls and letters from your creditors  

3. Stop lawsuits, wage attachments, checking account attachments and repossessions  

4. Buy you the time you need to work out your financial issues  

5. Eliminate unsecured debt obligation  

6. Relieve the effects that the stress of your current financial situation is causing on you and your family  

7. Begin saving money

Stop Foreclosure with a Chapter 13 Bankruptcy

Chapter 13 can stop foreclosure on your home immediately and let you reorganize your debt.

Chapter 13 Bankruptcy is often referred to as a "wage earner plan" or a "debt repayment plan". In Chapter 13 Bankruptcy, the debtor files a "Chapter 13 Plan" with the Bankruptcy Court agreeing to make the best effort to pay off as much debt as possible over a three to five year period of time. Some debts must be paid in Chapter 13; others need not be. The debtor makes a monthly payment to a bankruptcy trustee determined by monthly take-home pay less monthly living expenses. This means that after the debtor has paid his monthly expenses, any money remaining is paid to the Chapter 13 Trustee, who makes payments to your creditors. So when you file for Chapter 13, the bankruptcy court will take monthly payments from you and distribute a portion to each of your creditors. After three to five years of staying on this tight budget, you should be caught up on your debt arrearages, and the plan should be satisfied. As with any bankruptcy plan, the terms of the bankruptcy are somewhat flexible.