Submitted by admin on Wed, 11/19/2008 - 11:32
I own a home in Massachusetts, but I think the bank is going to foreclose. Can I stop them by filing for bankruptcy? (Posted by Locks95 on the Forum.)
A timely filing of Chapter 13 Bankruptcy will stop the foreclosure because of the "automatic stay" provision. You must actually intend to repay the loan and have the ability to do so. Your attorney will help you file a repayment plan that will give you 60 months to pay the arrears on the mortgage (while you also make your regular monthly payments). You should probably consult an attorney ASAP. While experienced attorneys can stop a foreclosure even if the Chapter 13 filing is made on the same day as the scheduled foreclosure auction, clearly that is not a good idea. If you cut it too close you could lose your home. Give your attorney several business days to make the necessary filings and to notify the bank's attorney and auctioneer.
For more information or to post a question, visit our MA Real Estate Law Discussion Forum.