If your home lender has sent you a notice of foreclosure or has indicated that it intends to foreclose, filing bankruptcy may give you the chance to keep your home or to slow down foreclosure proceedings and give you an opportunity to negotiate with your lender to stay in your home. Even more, Chapter 13 bankruptcy provides you with the ability to get back on track on your payments by letting you pay late payments over time.
It’s important to know, however, that bankruptcy may only stop the inevitable foreclosure from happening. Chapter 7 bankruptcy does not allow you to get caught up on a mortgage, so if you can’t bring your mortgage current, it’s very likely that your lender will ask the Colorado bankruptcy court to let its foreclosure proceed. Unless you have a defense to your default, the court will allow the foreclosure to move forward.
Bankruptcy Can Stop Foreclosure In Colorado And Get Rid Of Your Second (Or Third) Mortgage
Not only will bankruptcy stop foreclosure in Colorado, Chapter 13 bankruptcy may also help you eliminate second or third mortgages if your first mortgage is equal to, or greater than, the value of your home. If that’s the case, the bankruptcy court may be able to “strip” away the second or third mortgage and reduce the overall debt you owe on your home.
Learn How Bankruptcy Will Stop Foreclosure In Colorado
To learn more about whether or not Chapter 7 or Chapter 13 bankruptcy to stop foreclosure is your best option, schedule your free, confidential bankruptcy consultation with a Colorado bankruptcy attorney today. Our online scheduling system allows you to schedule a bankruptcy consultation or call 303.331.3403 to set up a time that is convenient for you.