Stop Foreclosure

The filing of a Chapter 7 bankruptcy will likely not stop foreclosure. If a foreclosure sale is pending when a Chapter 7 bankruptcy is filed by the property owner, the mortgage lender may be able to within a matter of a day or two get authority from the Bankruptcy Court to proceed with the pending foreclosure sale.

For a client who wises to stop foreclosure and keep the client's real property, Chapter 13 bankruptcy is the proper choice. The client will be afforded up to four years in the Eastern District of Missouri to repay in equal monthly installments the amount the client is behind on the mortgage loan through the client's Chapter 13 plan. The client must also pay the future monthly mortgage payments as they come due in order to keep the property. The Bankruptcy Court does require that the client have sufficient income with which to pay the client's Chapter 13 plan payments and monthly living expenses in order to qualify for filing a Chapter 13 bankruptcy case.

If a client has had a dismissal of a bankruptcy case within the last one year, he or she may or may not be able to stop a foreclosure sale by filing a new Chapter 13 bankruptcy case.Even if their has been no bankruptcy case dismissal within the past year, but there have been at least two bankruptcy case dismissals within the past few years, the client may or may not be able to stop the foreclosure sale with a Chapter 13 bankruptcy case.