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Chapter 13 To Stop Foreclosure After Prior Chapter 7 Discharge
received an email question from someone who filed a Chapter 7 bankruptcy two years ago and is now facing foreclosure on his home mortgage. He asked me whether a Chapter 13 bankruptcy could save his house. In the old days, this person could file a Chapter 13 bankruptcy to stop the foreclosure. Under the new bankruptcy law, once you complete a Chapter 7 bankruptcy you are not allowed to seek relief under a new Chapter 13 bankruptcy for several years regardless of whether your current problems, in this instance a mortgage foreclosure, arose after the Chapter 7. More particularly, you cannot file a Chapter 13 case if your eceived a discharge in a prior Chapter 7 that was filed within the past four years. I told this person that the new bankruptcy law prevented him from filing a Chapter 13 to stop the foreclosure.
February 14, 2007 in Chapter 13 | Permalink
Comments
The last two post are correct. That person will be required to be in a 100% plan.
Posted by: Stacey Butler | Mar 8, 2008 11:39:26 PM
I think he can still file the bankrupcty and get the benefit of the stay, but he will not be able to recieve a discharge. If he recently filed the chapter 7, there should not be much unsecured anyway.
Posted by: will woodall | Feb 20, 2007 1:52:52 PM
While you are prohibited from receiving a Discharge in the subsequent Chapter 13 bankruptcy, I believe that you may still take advantage of the Stay, stopping the foreclosure sale and reorganizing the secured Debt. This should be true notwithstanding the limitations on the automatic stay -- provided that the previous bankruptcy was not dismissed during the proscribed period of time for one of the reasons enumerated in the code.
Posted by: Ian Leavengood | Feb 16, 2007 7:57:47 AM
