Individuals file Chapter 13 Bankruptcy for one or more reasons or a combination of factors. The higher percentage of individuals I have represented file Chapter 13 to stop a foreclosure sale by their mortgage company. Foreclosure sale proceedings are initiated by the mortgagee because the debtors were delinquent on payments to their mortgage company. Another reason is to stop a car creditor from repossessing the debtors’ car. The filing of the Chapter 13 in U.S. Bankruptcy Court immediately stops the foreclosure sale and repossession, so long as the creditor has been given notice that the Chapter 13 was filed. In my experience, I have yet to have a creditor foreclose or repossess after a Chapter 13 was filed. I have my clients provide me with the name, address, telephone and fax numbers, then as soon as we file the Chapter 13 case electronically with the U.S. Bankruptcy Court, we receive bankruptcy case number, and I phone the foreclosing or repossessing creditor to give notice, and we fax notice to the creditor.
I would like for you to now read the article I published on May 8, 2009 to help you to decide for yourself if Chapter 13 is for you. Click here to read please.