After we have received the money and questionnaire we prepare a petition and schedules. You will meet then with your attorney to review and sign the paperwork. The petition is then signed and filed electronically. At that time the automatic stay is imposed by the bankruptcy code. When the bankruptcy is filed all collection action must stop including phone calls, garnishment, repossession, foreclosure or any other legal action.
Listen to an audio message about the signing appointment.
A plan is filed in the chapter 13 which provides to cure the missed payments in the chapter 13 plan over a three-five year period. For example: You are behind in your house payment $6000. We file a chapter 13 and provide that the lender is paid the defaulted amount at the rate of $100 per month. After the chapter 13 is filed you resume the house payment and pay the chapter 13 who pays the lender towards your arrears. Foreclosure is stopped and you keep the home.
You must file the chapter 13 before the foreclosure sale takes place.
Timing is critical. You may want to wait to file the chapter 13 even though your home is in foreclosure until you are able to resume the normal payments required after the chapter 13 is filed. Your attorney can advise you in this area.
In certain instances we can draft a plan to make a smaller payment and provide for a "balloon" or lump sum payment several years in the future to make your monthly payment more affordable or "tier" the payments - meaning start lower and go up over time to pay the arrears off in the length allowed for the plan. Once again we have the years of experience to know exactly how to help you.
"We are a debt relief agency -- and have proudly been doing this now for over thirty years. We help people file for bankruptcy relief under the Bankruptcy Code."
