Use Bankruptcy to Stop Foreclosure in Maine

The term “stop foreclosure” is a bit of a misnomer. While it is true that bankruptcy can at least temporarily stop a state foreclosure action, bankruptcy cannot relieve you of your obligation to make your monthly mortgage payments. If you want to keep your home, you must pay for it.

If you surrender your home, bankruptcy slows state foreclosure action for a few weeks until the creditor gets relief from the bankruptcy stay. More importantly, Chapter 13, Chapter 12, and Chapter 11 can stop foreclosures long-term if you can propose and confirm a viable plan of reorganization.

At the law office of Perry O’Brian, we have focused our practice on bankruptcy since we opened our offices in 1984. We offer comprehensive counsel to individuals and small businesses. Using our skills, knowledge, and experience to simplify the process, we help you get the outcome you seek.

We built our practice on a commitment to responsive, efficient advocacy. We return all calls and e-mails promptly. We always take steps that minimize time and expense.

Using Chapter 13, 12, or 11 to Stop State Foreclosure Actions

Because a mortgage secures the note on your home, you cannot discharge your obligation under Chapter 7 unless you give up your home. If you want to prevent a foreclosure of your real estate, we will help you seek reorganization of your debts under a Chapter 13 bankruptcy (if you are filing as an individual), a Chapter 12 (if you are a family farmer or fisher), or Chapter 11 (if you are a business).

However, to successfully stop foreclosure long-term, you must make your monthly mortgage payments as they become due. If you fall behind on your post-filing mortgage payments, the secured creditor obtains relief from the bankruptcy stay and picks up any state foreclosure action where they left off. You need enough income to propose a feasible plan of reorganization.

We handle all matters related to bankruptcy, including preparing and filing all necessary documentation and acting as your advocate with creditors, the court, and the bankruptcy trustee. We help you prepare a reorganization plan to submit to the Court. We work with you to formulate a plan of reorganization that you can afford.