How does foreclosure work in Wisconsin and how does filing bankruptcy stop it?

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.