How can bankruptcy stop a foreclosure
If you are facing a foreclosure you may still be able to keep your home through the bankruptcy code. A Chapter 7 bankruptcy won’t prevent foreclosures if you fall behind on your mortgage payments but may possibly postpone the foreclosure for a few months in order for you to negotiate with your lender. However, Chapter 13 bankruptcy may provide relief so you can keep your home.
How Chapter 7 Bankruptcy can stop a foreclosure:
After filing your bankruptcy papers with the court, an automatic stay will be set by the federal court which will temporarily prevent the foreclosure. During this time you may be able to negotiate with the lender and attempt to reach an agreement regarding payment and keeping the house. If the lender wants to proceed with the foreclosure they will have to ask for permission from your bankruptcy judge. This is done by a written motion to the court and a hearing. If the motion is granted the lender will be able to foreclosure. In many situations the bank will wait to the bankruptcy to finish before proceeding. However, after completing your bankruptcy your debts will be eliminated at the end of the process. (read more about chapter 7 bankruptcy)
How Chapter 13 Bankruptcy can stop a foreclosure:
If you are facing imminent foreclosure we can file quickly stop the foreclosure and proceed in creating a plan so you can keep your home. Chapter 13 bankruptcy is a payment plan that allows you to repay missed mortgage payments and keep your home (read more about Chapter 13). It is a complicated process, however if the plan is successful you will be able to keep your home and possibly remove any junior liens on your property. (read more about lien removal)
Call the Law Office of Rami N. Nabi today to see how we can help you keep your home.