You can use a bankruptcy to stop a foreclosure in Kansas and even catch up on all the missed payments. If you have fallen behind on a home mortgage and you need a chance to come current you might be able to file a Chapter 13 bankruptcy and propose a plan to fix everything.
Kansas is a judicial foreclosure state. Your mortgage company must go to state court to obtain a judgement against you to foreclose on your residence for nonpayment. Up until the sale has occurred on the house through the foreclosure process you can file a bankruptcy to stop the sale. If a sale has occurred then you are generally unable to force a mortgage company to be repaid through a bankruptcy plan.
If you file a bankruptcy case and you want to save the home you will have to propose a plan that runs over 3 to 5 years. During that plan you will make your ongoing house payments through the bankruptcy trustee’s office. You will also make the missed payments up over that same period of time.
As an example, let’s imagine that Brian and Debbie are married with two children. One of them is laid off for a period of 6 months and during that time they fall behind 4 months on their house payment. Now they are both back to work but a foreclosure has been filed by their mortgage company and they want to save their house.
After consulting with an attorney and looking at their options they file a chapter 13 bankruptcy. The house payment is normally $1,000 a month and they are now $4,000 down. Assuming they are filing the case in Kansas, they will have to make up the arrears ($4,000) over a 3 to 5 year period of time. They do a budget with their attorney and decide to do so over 50 months. This means the basic payment for the house ($1,000 per month) and the arrears ($80 per month over 50 months) would be paid through the case.
This does not include several things: Their attorney’s fees, bankruptcy trustee’s fees, mortgage company attorney’s fees, and possibly escrow fees. All of those costs are determined independently and are usually rolled into the 50 month plan to be paid over time.
Every case is different but It is free to sit down with one of our attorneys and go over your options.