Foreclosure in Wisconsin is a fairly long process. Many people fear that the first time they are late on a mortgage payment they are a short time away from “getting kicked out.” It typically isn’t that simple, or that fast. Wisconsin law protects homeowners with redemption periods. The redemption period is a period of time that the lender must wait and see if the homeowner can make arrangements to get caught up. If the property is your home, Wisconsin law requires either a six or twelve month redemption period prior to selling it at a foreclosure sale. So how does bankruptcy fit into this? At any time during the foreclosure process a person can file a Chapter 13 bankruptcy. The automatic stay will stop the foreclosure process at whatever stage it is currently in. The Chapter 13 repayment plan will provide up to five years for a person to pay back any arrears they owe the mortgage company. So if you temporarily lost your footing due to a job layoff, extra holiday expenses or an unexpected illness, for example, Chapter 13 bankruptcy helps you get back on your feet and save your home.
How does foreclosure work in Wisconsin and how does filing bankruptcy stop it?
