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Our Offices

  • Vernon Office

    Address

    244 State Hwy 94
    Vernon, New Jersey 07462

  • Wayne Office

    Address

    73 Mountainview Blvd
    Wayne, New Jersey 07470

    Phone

    973-764-1633

  • Pompton Lakes Office

    Address

    58 Colfax Avenue #1
    Pompton Lakes, New Jersey 07442

  • Hackensack Office

    Address

    41 Main Street
    Suite 2
    Hackensack, New Jersey 07601

    Phone

    973-764-1633

  • Nutley Office

    Address

    345 Centre Street
    Suite 2
    Nutley, New Jersey 07110

    Phone

    973-764-1633

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    I highly recommend Mr. Zimmermann as an attorny. I recently purchased an investment property and boy was he helpful. He was easily available, very clear in explaining various concepts, laws and regulations, and provided very helpful tips o...
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  • Blog >
  • How Chapter 13 Can Stop the Bank From Foreclosing on Your Home

How Chapter 13 Can Stop the Bank From Foreclosing on Your Home

Losing your home to foreclosure is a frightening prospect, but there are legal remedies available. Bankruptcy is a tool that allows individuals to discharge or restructure debts and get a fresh start. A Chapter 13 bankruptcy is a particularly desirable option for people facing foreclosure. In a Chapter 13, you can create a repayment plan and pay off most of your debts — including mortgage arrears — in five years or less. During this period, creditors are forbidden by law from starting or continuing collection efforts concerning those debts, and you can usually restructure your mortgage on more favorable terms.

Determining eligibility is the first step in securing Chapter 13 protection. Generally, individuals with unsecured debts less than $394,725 and secured debts (like mortgages) less than $1,184,200 are eligible for relief. Several requirements and exceptions may apply, so it is best to consult an experienced bankruptcy attorney when considering whether Chapter 13 is likely to provide the relief you need.

The next step is to file a Chapter 13 petition. This automatically halts collection activity against your property. As long as the stay is in effect, creditors may not initiate or continue lawsuits or foreclosures. Filing a Chapter 13 petition timely is crucial, as you can still lose your home if the mortgage company completes the foreclosure process before the petition is filed.

A repayment plan must be proposed and be given court approval. It generally provides for partial repayment of all your unsecured debts, including overdue mortgage payments. Although the mortgage loan remains in effect, you may be able to renegotiate the terms with the bank, such as to reduce the interest rate or to alter the repayment schedule. As long as you continue to make the agreed-upon mortgage payments, you can retain your home. Although another default is technically possible, Chapter 13 usually puts debtors back on track and saves their homes.

The Law Offices of James C. Zimmermann assists New Jersey clients in bankruptcy, foreclosure defense and real estate matters. Please call 973-764-1633 or contact us online for a free initial consultation at one of our five North Jersey offices, located in Vernon, Wayne, Pompton Lakes, Hackensack, and Nutley. We have evening and telephone appointments to accommodate your schedule.