What you need to know about Chapter 13 bankruptcy and mortgage foreclosure is that you do not need to roll over for the mortgage company. What you need to do is to take action to protect yourself when the sheriff comes knocking at your door. Retaining an attorney who will protect you and your family is of the utmost urgency! As a chapter 13 lawyer we may advise that your best move is to file and force a repayment plan upon the mortgage company; there are additional benefits such as eliminating credit card debt, stopping law suits and ending all of the harassing telephone calls. It is quite possible your monthly payments get reduced to 3 payments: your mortgage, your car loan and a trustee payment; depending upon your facts, all of your other debt will be eliminated, a chapter 13 gives you a fresh start.
Now, it may not necessarily be in your immediate best interest to have a chapter 13 bankruptcy lawyer file a petition immediately. You have choices when the mortgage foreclosure complaint arrives. The chance to take advantage of those choices is right away. Defenses can be filed with the court to stop the proceeding, assert your legal rights as to whether the mortgage company is acting with legal authority. The issue of the original note, is the bank which has filed the foreclosure papers the right entity? Perhaps there are technical defects which will help you obtain a good defense or mortgage modification. These and many other issues can be explored and considered in defending the foreclosure.
Failure of a person to act, doing nothing and letting a default judgment be entered against you is completely unnecessary. You should consult with an attorney experienced in chapter 13 bankruptcy filings as well as one who defends foreclosures. Our office does both. We encourage you to bring in the law suits and other evidence of debt you have for a consultation. Whether we defend the mortgage foreclosure or file a chapter 13 bankruptcy, your best interests will be considered and met. The choice is yours; we can help.