Yes. We can stop foreclosures and repossessions in their tracks by filing a bankruptcy — usually a Chapter 13.
When most people think of bankruptcy, they think of Chapter 7, the "fresh start" filing. But Chapter 13 has a different and equally important purpose: it lets people save their homes from foreclosure and their cars from repossession.
How Chapter 13 Protects Property
A Chapter 13 plan lets you catch up on what you're behind over three to five years, while staying current on the regular payment going forward. The moment the case is filed — even the day before a scheduled foreclosure sale — the automatic stay stops creditors from continuing collection.
What the Plan Looks Like
Say a family is four months behind on a $1,000 mortgage payment — $4,000 in arrears. In a five-year plan, that $4,000 spreads out as $66/month on top of the regular mortgage payment, for a total of about $1,240/month. The plan payment can often come straight out of your paycheck so it happens automatically.
At the end of the plan, the arrears are paid in full, the home is current, and the family keeps it.
It's More Affordable Than You Think
The bulk of attorney fees are paid through the plan, not up front. In most St. Louis and St. Charles cases we can get a Chapter 13 filed for a small initial fee. If you're staring down a foreclosure or repossession, don't wait — call us today.