Re: only stops it for awhile..think people misunderstand

Posted by LadynRed (68.32.101.73) on February 09, 2004 at 19:21:48:

In Reply to: only stops it for awhile..think people misunderstand posted by catballou on February 09, 2004 at 19:03:49:

BK WILL stop a forclosure - for a while. Once the automatic stay goes into place (when you file), then the lender HAS to file for a relief from stay to continue with forclosure action. However, in CH 13, arrearages are typically added to the plan and the lenders KNOW they will get paid because secured debts are paid FIRST and usually at 100% in a Ch 13.

Its more likley to happen in a CH 7 that a relief from stay is granted for arrearages on secured debts. If you're not caught up, then you can't reaffirm on a secured debt in a Ch 7 either and if reaffirmation is required, as it is in some states, then you WILL lose your house unless you can get the past due amounts paid up.

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