When you face foreclosure, you may have a few options for stopping it and working out new housing arrangements. If you are behind on your mortgage, a bankruptcy filing can help you keep your home, reduce creditor pressure and come up with a repayment plan for any remaining debt. The right strategy for your situation depends on which type of bankruptcy you choose.
Can Chapter 7 Bankruptcy Stop Foreclosure?
In Chapter 7, which is a liquidation form of bankruptcy, an automatic stay goes into effect immediately upon filing. This legally stops creditors from taking action to collect on any debt you owe, including a mortgage lender. If a lender has already scheduled a sale for your property, the foreclosure must stop, but a lender can file a motion to lift the stay in order to resume the sale, typically within three months of you filing for bankruptcy.
A bankruptcy attorney should be consulted as soon as possible to discuss your options, as you might be able to fight the motion to lift the stay in court. In addition, you can try to pay the mortgage arrears to avoid a foreclosure sale altogether. If you are unable to make up the arrears, however, a home foreclosure lawyer can develop a chapter 13 repayment plan that allows you to keep your house while allowing you to catch up on mortgage payments over time.
What Does a New York Home Foreclosure Lawyer Do to Stop a Foreclosure?
For many people, the prospect of losing their homes is very stressful. If you are facing a mortgage foreclosure in New York, you might wonder if bankruptcy is an option to save your home. The answer to this question is complicated. Bankruptcy can stop a foreclosure by putting an immediate halt to a sale, but it can also merely pause the process while you work on making up missed mortgage payments. A bankruptcy attorney can help you understand your options and decide on a course of action that is right for you.
During bankruptcy, you can use the process to eliminate debts that are not secured by assets, like a car loan or second mortgage. However, the trustee who liquidates your non-exempt assets will probably award some of these funds to your mortgage lender. The trustee might also be able to remove a lien on your home, depending on how much it drops in value after the bankruptcy.
A home foreclosure is a serious matter, but experienced bankruptcy lawyers can help you find the best solution for your needs. Contact us today to get started. Call or contact us online now. We look forward to helping you get back on track financially. We can even help you file for Chapter 13 bankruptcy if you qualify. We offer a wide range of other services, including debt negotiation and credit repair.
Cain & Herren, ALC
2141 W Vineyard St, Wailuku,
HI 96793, USA
+1 (808) 242 9350
cainandherren.com
