Stop Home Foreclosure Through Bankruptcy
Thousands of Minnesota homeowners have lost their homes to foreclosure in the past few years. If you are months behind on your mortgage, bankruptcy may allow you to save your house and catch up on the arrears over time.
At Hoglund, Chwialkowski & Mrozik, PLLC, we know that job layoffs, health problems, divorce or other hardships quickly can lead to serious debt problems. We have helped individuals and families across Minnesota stop foreclosure and get back on a good financial track.
CALL US TODAY at 800-850-7867 or 651-202-2203
· Free consultation to discuss your mortgage crisis
· No money up front to file Chapter 13 bankruptcy
· 14 convenient locations in the Twin Cities and beyond
· Experienced, compassionate, local attorneys
Minnesota Foreclosure and Bankruptcy Attorneys
Filing for bankruptcy prevents or halts the foreclosure process. Ideally, it will allow you to stay in your home, pay off the arrears. At a minimum, it will provide more time to catch up your payments and to try to work out an alternative to foreclosure.
With 40 years of combined experience, our experienced bankruptcy lawyers can help you determine if you can afford to keep your home. We will sit down with you to examine your financial picture, including your house payment, your mortgage arrears and your other debts.
- If you are current on your mortgage but unemployed or drowning in other debt, a Chapter 7 bankruptcy discharges unsecured debt, freeing up money to keep your house. You cannot discharge mortgage arrears in Chapter 7.
- If you are behind on your mortgage, a Chapter 13 bankruptcy may be the answer. Filing for Chapter 13 stops foreclosure proceedings. If you can continue making house payments, the past-due amount can be rolled into your debt repayment plan, which is spread over three to five years.
- Our attorney fees for Chapter 13 also are rolled into your plan. This allows you to stop foreclosure now without having to find the money to pay the bankruptcy attorney up front.
- If you are “underwater” on your mortgage — owing more than the home is currently worth on the market — their may be options available as the laws surrounding foreclosure in Minnesota are changing. Call us for more details about your specific situation 651-202-2203.
The Foreclosure Process
Foreclosure is a legal process to take possession of your home for non-payment of your mortgage, taxes, judgment or other debt. The bank or mortgage company typically will hire an attorney to initiate foreclosure a number of months after you have missed a payment. The lender will provide a window of time to avoid foreclosure by paying the delinquent amount.
If the mortgage is not brought current within 30 days of the default letter, a date will be set for a sheriff’s sale approximately six weeks later. After the home is sold to the highest bidder, you still have six months to a year to live in the home and to consider your options: refinance, sell, file for bankruptcy or surrender the house. If you abandon the property before the six months are up, the lender or buyer can petition in court to shorten the redemption period to five weeks.
The Chapter 13 Bankruptcy Process
You can file for bankruptcy protection before foreclosure is initiated, after you have been notified or even on the eve of the sheriff’s sale. You immediately are protected from foreclosure, repossession and all creditor actions and debt collectors.
Our knowledgeable attorneys will propose a realistic repayment based on your income, your mortgage, your arrears and other obligations. About a month after filing, you must make a brief appearance in bankruptcy court for the meeting of creditors. The bankruptcy judge will approve a final payment plan. If you successfully complete the plan, any remaining unsecured debts are discharged.
Call Us Now · 800-850-7867 or 651-202-2203
The Hoglund Promise · What Our Clients Say
Chapter 13 can save your house, but you must be able to keep up with the house payment and the bankruptcy payment plan. We work with clients to ensure that they can afford the plan. We are always available to assist for the duration of your plan if circumstances change and you need to modify your Chapter 13 or let the house go. Contact us today for a free consultation.