Stopping Foreclosure Sale
A client contacted me after foreclosure had started on her house. It was set for sale at a public auction because she fell behind on her mortgage payments. My client was able to file Chapter 13 bankruptcy the day before the auction, which stopped the sale from happening.
She used her Chapter 13 bankruptcy to catch up on her past due mortgage payments and save her house. This means she keeps making her regular mortgage payments on time, and makes one payment a month to the Chapter 13 Trustee. When my client completes her Chapter 13 payments, she will be caught up on her home loan and won’t have to make any payments on her unsecured debt (credit cards and medical bills) since it will discharge.