Stop foreclosure with a Chapter 13 bankruptcy
Chapter 13 bankruptcy is designed to organize a homeowner’s debts into a simple repayment plan, according to NBC News. This allows homeowners to continue making payments on and ultimately keep their homes. In some cases, lenders will no longer accept mortgage payments from the homeowner once they become delinquent on their mortgage. After filing for Chapter 13, however, lenders must accept any mortgage payments that are given to them.
Once the bankruptcy documents are filed with the court, any foreclosure proceedings that have started are immediately stopped, as reported by the United States Courts. Not only does this give the debtor relief from the stress of an impending foreclosure, but it also stops any harassing creditors from calling regarding other unpaid expenses or bills.