Illinois Foreclosure Defense Attorney

Home foreclosures in Illinois and around the country are at all time highs. The struggling economy combined with predatory lending practices and a stagnant real estate industry have triggered one of the worst foreclosure epidemics in history. If you are under the threat of foreclosure or foreclosure proceedings have already begun on your home, there is still hope. Filing for bankruptcy can stop a foreclosure.

How Bankruptcy Stops Foreclosure

When you file for Chapter 13 bankruptcy, you can stop the foreclosure on your home. In fact, this is one of the main reasons individuals choose to file for Chapter 13. Under Chapter 13, you propose a plan to repay your overdue mortgage payments while continuing to pay your current mortgage payments. The plan lasts three to five years depending on your level of income and your amount of debt. Chapter 13 bankruptcy allows you to catch up on your mortgage payments and keep your home.

Chapter 13 Eligibility Requirements

While bankruptcy can be a powerful tool to save your home, you must meet the eligibility requirements in order to use it. If your mortgage (combined with other secured debts) exceeds $1,010,650, then you are ineligible for Chapter 13. Additionally, you must also be able to demonstrate that your income is sufficient to repay some or all of your debts according to your repayment plan. Because you must pay towards the mortgage payments that are in arrears as well as continue to make regular mortgage payments, your bankruptcy petition must show that you will have disposable income to dedicate to missed payments.

Filing for bankruptcy to stop a foreclosure can be a complicated process. It’s important to have a knowledgeable bankruptcy attorney on your side to help you though. If you are facing foreclosure and want to save your home, contact us at Northwest Suburban Bankruptcy to schedule a consultation.