Filing bankruptcy triggers an automatic stay — the foreclosure sale stops immediately, even if scheduled for tomorrow. Chapter 13 lets you catch up on mortgage arrears over 3-5 years while keeping your home. Dream Financial Management since 1994.
Best option to stop foreclosure permanently. The automatic stay stops the sale immediately. You propose a 3-5 year repayment plan to catch up on mortgage arrears while making current payments. At the end, you are current on your mortgage. You keep your home. Other debts may be partially discharged.
Key: You must have sufficient income to make ongoing mortgage payments and the Chapter 13 plan payment.
Stops foreclosure temporarily but does NOT save your home long-term. The automatic stay halts the sale for several months. If you are behind on mortgage payments and cannot catch up, the lender will obtain relief from the stay and proceed with foreclosure. Chapter 7 can discharge unsecured debts, freeing up income — but it won't permanently stop a foreclosure alone.
Key: Good for delaying foreclosure to buy time — not a permanent solution for mortgage arrears.
Bankruptcy has long-term consequences for your credit and finances. It should be considered alongside all other foreclosure alternatives. Dream Financial Management helps homeowners evaluate bankruptcy and all other options. Since 1994.
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