A Chapter 13 Bankruptcy case can save a house from foreclosure. Immediately upon the filing of a chapter 13 the foreclosure action stops immediately. The total amount of the mortgage arrears must be paid to the mortgage company through a monthly trustee payment.
In addition to the trustee payment, the debtor must continue to pay their monthly mortgage payments directly to the mortgage company. The trustee plan payments should last for approximately sixty months. After the completion of the bankruptcy plan, the debtor should be current with all mortgage arrears.
If you have questions about bankruptcy and wish to speak with a bankruptcy attorney in New Jersey, please contact me at (856) 797-1500 for a free consultation.