Sandy’s Story: Saving a Home through Chapter 13 Bankruptcy

It was 8:15 am on a Wednesday in early July. I arrived at the office and thought I would be the first one there. However, I was met by Sandy who had been waiting outside my locked office. She was upset and said she needed to see me. I was confused because I didn’t know her and had no appointments that day. Sandy quickly told me that she did not have an appointment but needed help. She explained that she had been out of work for most of the past year and was very behind on her mortgage. The bank was foreclosing on her home. I told her there was no need to worry. We could help. Then she told me that the foreclosure was scheduled for 10:30 a.m. that day!

There was little time to act. I unlocked the door and invited her in. We have used the bankruptcy process to save many homes in the past, but never on such short notice. I brought Sandy to the conference room and got her some coffee. We quickly discussed her situation. I learned that she had been out of work due to an injury but had recently returned. We discussed her options and decided that a Chapter 13 Bankruptcy was what Sandy needed.

Chapter 13 utilizes a repayment plan which can be used to help people who are behind on their mortgage get current without fear of foreclosure. Based upon the quick information I was able to obtain, I felt Sandy could afford the payment plan and save her home.

The best part is that any bankruptcy filing can be done on an emergency basis. The moment the Bankruptcy Petition is filed, all collection activity, including scheduled foreclosures come to a screeching halt. This benefit is known as an “automatic stay.” But we still needed to get the Bankruptcy filed before 10:30 a.m.

We assisted Sandy in completing the online credit counseling course and finalized the emergency Bankruptcy Petition. We filed the case electronically at 10:12 a.m. and saved Sandy’s home from foreclosure that day.

However, this was only the beginning. Over the coming weeks, we worked with Sandy to get all of the needed documents to complete the full Bankruptcy Petition and plan. Over the Chapter 13 plan period of five years, Sandy worked hard; she made all of the monthly payments to her mortgage and Chapter 13 Plan. Using the bankruptcy process, Sandy was able to get current on her mortgage, save her home, and even eliminate some other debts.

While we do not advocate waiting as long as Sandy did, at Contant Law we can often help even on short notice. All you need to do is ask. If you find yourself facing foreclosure or overwhelmed with debt, Contant Law is here to help you.