The minute you file a Chapter 13, a legal protection called the “automatic stay” goes into effect. The automatic stay functions as a form of protection that stops just about every creditor action. Specifically, pending foreclosures are halted immediately, even if the foreclosing lender does not yet know about your bankruptcy filing. If, for example, your foreclosure sale is scheduled for 10 AM on a Tuesday morning in Fulton County, and the actual sale occurs at 11:53 AM, a Chapter 13 case filed at 11:32 AM makes the 11:53 AM foreclosure sale void. Obviously you would not want to wait until minutes before foreclosure to file but this example should demonstrate just how powerful and immediate Chapter 13 automatic stay protection works. I have written more about the Georgia foreclosure process and the impact of the automatic stay on my blog – click to read that post.
As you probably realize, stopping the foreclosure in only the first step of the process. We have to be able to prepare and submit a repayment plan to the bankruptcy judge that “cures” your mortgage arrearage and provides for a repayment of that arrearage to your mortgage lender as well as repayment to all creditors. Click to read more about how Chapter 13 not only stops foreclosure but offers you a realistic opportunity to restructure your debts and save your home permanently.