It is possible to avoid foreclosure through filing bankruptcy. While filing Chapter 7 bankruptcy may help, in most cases, it only help to delay the foreclosure by a number of months. Most people prefer filing Chapter 13 Bankruptcy St. Charles MO when it comes to foreclosure as it is able to save their home.

Usually, foreclosure begins when you fall behind on mortgage payments. At this point, your lender begins the process of selling your home at auction in a bid to get payment for the loan. However, the process doesn’t happen overnight, but usually the lender will not start the foreclosure process until you have missed several repayments, often 3 to 4 times.


The grace period you are given by your lender before he starts the foreclosure process should be the right time to for you to try some alternate measures such as a short sale, loan forbearance, or a deed in lieu of foreclosure. However, if you tried these measures before and failed, it is a good time that you consider Chapter 13 Bankruptcy St. Charles MO as a possibility for avoiding or delaying foreclosure. Check us out online at Stevenbrownlaw.com to learn more.

As mentioned before, filing a Chapter 13 bankruptcy is probably the only way to keep your home. Chapter 13 let you pay off the late, unpaid payments or arrearage over a lengthy repayment plan that you propose. The repayment plan can sometimes go up to five years. You will, however, need enough income to be able to make your current mortgage payments while paying off the arrearage. If you manage to make the required payments up to the end of the repayment plan, then you will be able to avoid foreclosure and keep your home.

By filing Chapter 13, you will be able to eliminate the payments on your second or third mortgage. That is important because, if your first mortgage was secured by the entire value of your home, then you may no longer have any equity with which to secure the following mortgages. Under Chapter 13 the second and third mortgages will be striped off and re-categorized as unsecured debt, and you will not have to pay them back at all.

If you have been faced with a threat of a foreclosure, hire a lawyer from Law Offices of Steven K. Brown to help you file Chapter 13 Bankruptcy St. Charles MO and keep your home.