Yes. Even better, we can propose a way to keep the house.
Let’s say you were out of work for the last 6 months and feel behind 6 payments on the mortgage. Now you’re working again. We can file a chapter 13 and propose a plan to the court to catch up on those missed payments. If you’re 6 months behind on a $2,000 a month mortgage, then you’re 6×12 = $12,000 behind. We would then propose a chapter 13 where you pay $200 a month to the bankruptcy trustee over the next 60 months to catch upon that $12,000 you were behind.
Now if the foreclosure sale is tomorrow, so long as you file bankruptcy before the sale takes place, the bankruptcy will stop it.
The moment you file bankruptcy, the court (federal Bankruptcy Court for the District of Utah) imposes something called the “automatic stay” which stays (stops) collection activities, including foreclosure, garnishment, and repossession.
Even if the mortgage company doesn’t know that you filed bankruptcy and still conducts the sale, you win. Bankruptcy trumps foreclosure, and if the bankruptcy was filed first, then the foreclosure sale was not valid.
This is not legal advice. If you need help, call 801-980-1313 or go to http://www.robertspaynelaw.com/.