Stop Foreclosures in Atlanta, Georgia With Chapter 13 Bankruptcy and Keep Your Home

Filing Chapter 13 bankruptcy stops foreclosures in Atlanta, Georgia by creating what is called the automatic bankruptcy stay. The bankruptcy stay is a court order that prevents a mortgage company from foreclosing on a home even the day before foreclosure day (which is the first Tuesday of every month in Georgia) if a debtor has filed bankruptcy. The stay is automatic, meaning that no judge actually has to sign an order for the stay to be effective. Although filing Chapter 7 bankruptcy may temporarily stop a foreclosure, a Chapter 13 bankruptcy actually provides a plan to allow a homeowner to keep the home long-term.

In a Chapter 13 bankruptcy, a debtor reorganizes his or her debts to create a 3 to 5 year repayment plan to creditors. The plan often includes mortgage arrearage that a debtor has accumulated and proposes to pay back the arrearage with no interest or additional late fees. Any other debts are added into the mix to calculate a monthly repayment amount in the Chapter 13. So long as the debtor also makes timely monthly payments on his or her mortgage after filing Chapter 13, then the debtor can keep his or her home. Chapter 13 also provides the option of wiping out second mortgage liens for debtors whose homes are undervalued.

In addition to Chapter 13 bankruptcy, homeowners in Atlanta, Georgia who are facing difficulty with paying their mortgages, can also look into home loan modification to reduce their monthly mortgage payments and even interest rates.

If you are a homeowner facing foreclosure in Atlanta, Georgia or struggling to stay current on your mortgage payments, call the Law Offices of Charles Clapp to schedule a consultation with a bankruptcy lawyer who will review your options both in and outside of bankruptcy. Call 404.585.0040 to schedule a free consultation.