How Does a Chapter 13 Bankruptcy Affect a Foreclosure?
The interplay between bankruptcy and foreclosure and especially chapter 13 bankruptcy and foreclosure, is very important. There’s a number of different things that chapter 13 can do to affect foreclosure.
The first thing that it can do is chapter 13 can stop the foreclosure proceeding. This is especially important if someone is up against a foreclosure sale date. The second thing that chapter 13 can do is it can create a forum to request a modification.
Statistically, this has been a very successful program. Thirdly, for a loan that isn’t too far behind, chapter 13 can be used to create a longterm catch-up program. So the back amount that’s due can be spread out as far as five years while making the remainder of your regular payments as well.