Experienced Foreclosure Defense Lawyers

Chapter 13 bankruptcy is a debt repayment plan that the homeowner proposes to bankruptcy court. In order to use Chapter 13, you must have a stable income source and enough disposable income to make the regular monthly mortgage payment and a catch-up payment.

Reorganization of Debt Can Save the Home

In a Chapter 13 bankruptcy, the homeowner pays the mortgage lender the regular monthly payment and a catch-up payment toward the arrears. As long as the debt repayment plan is followed, the mortgage lender cannot bring or continue foreclosure proceedings. At the end of the plan (36 to 60 months), all back payments will have been paid in full and the home will be safe. Individuals can file for Chapter 13 debt reorganization before or after a foreclosure suit has been served. They can even file up until the day of the foreclosure sale.

Residential and Commercial Mortgages

At Urban & Burt, Ltd., our lawyers counsel and represent individuals who are facing foreclosure, developing strategies that will allow clients to keep their homes. We also represent owners of commercial real estate, helping them hold on to their investments in office buildings, retail operations, and other types of commercial property.

How Chapter 13 Bankruptcy Works to Save the Home

Our attorneys use bankruptcy and non-bankruptcy solutions such as workouts and negotiated arrangements to accomplish this. Whichever approach we use, our goal is to tailor our solutions to the specific circumstances of our clients. Our primary method is to help homeowners file Chapter 13 bankruptcy. This type of bankruptcy reorganizes an individual’s debts, allowing the person to pay off the arrearages over time, usually 36 to 60 months.

Act Quickly

Individuals who have received notice of foreclosure, or homeowners who anticipate foreclosure, should speak with a knowledgeable bankruptcy lawyer immediately. This is critical because your attorney wants to work to minimize your costs, and once a foreclosure is filed, you will be responsible for the bank’s attorney’s fees as well as all the delinquent payments. Avoiding foreclosure altogether is the best approach. However, our law firm can assist clients until the house is sold at a sheriff’s sale or by the mortgage lender, even at the last minute before the sale.

Don't delay. In Illinois, once the Sheriff's Sale has been held you no longer will be able to save your home with a Chapter 13. In extraordinary circumstances after a sale has been completed we may be able to negotiate the repurchase of your home from the mortgage lender if you can raise cash to do so.

Mortgage Stripping

Chapter 13 also allows mortgage stripping or discharging second and third mortgage debts. Our attorneys are adept at this, giving clients an increased ability to make payments on their first mortgages and bring their accounts current. Unsecured creditors such as credit card companies, hospitals, and retail stores are often enjoined against contacting you or making any efforts to collect their debts while you are paying the mortgage arrears under a confirmed plan.

If you have fallen behind in your mortgage payments, contact the Oak Forest foreclosure defense attorneys at 708-381-5426 to learn more about our Illinois law firm and how we help clients stop foreclosure. As a full-service law firm, we are also able to help clients with legal matters that may not have a bankruptcy component.

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