chapter 13 bankruptcy and foreclosure

First of all this is the definition of the foreclosure:

Foreclosure is the legal procedure in which the government takes ownership of a certain property. If you don’t pay the mortgage in time the company that give you the house loan can take your house and sell it order to recover their money.

Chapter 13 gives the individuals several advantages over bankruptcy under chapter 7.Maybe the most powerful advantage of chapter 13 is the opportunity to save your home or properties from foreclosure. By filling for chapter 13 people you can stop the foreclosure procedures and may solve the delinquent mortgage payments in time.

But don’t be confused. It doesn’t mean you will keep your house and you don’t have to pay anymore. You still have to pay all mortgages but you will do this according to a pay plan approved and supervised by a bankruptcy court.

When you fill for chapter 13 the bankruptcy court will issue a Automatic Stay order. After this you may pay the mortgages and keep up with the original plan until your chapter 13 payment plan will be approved. After that you will pay monthly according to this plan.
Attention: you may still loose the home if the mortgage company finishes the procedures before the Automatic Stay order.