Yes, bankruptcy will stop foreclosure. Of all the methods people pitch, bankruptcy is the only one that is guaranteed to work.
The reason bankruptcy is so effective in stopping a foreclosure is because of the "Automatic Stay," which says that all collection activity on all of your debts is automatically stopped (or "stayed") the minute you file your bankruptcy case.
There are two main types of bankruptcy: Chapter 7 and Chapter 13. Both will help in a foreclosure situation, but they work differently and to different degrees.
Orlando Bankruptcy Attorney, Types Of Bankruptcy, Mortgage After Bankruptcy,
When your bankruptcy lawyer files a Chapter 13 bankruptcy for you, it can stop the foreclosure permanently. Chapter 13 gives you a method of paying back the total amount you are past due on the mortgage, and you can pay back that arrearage over 36-60 months. If you can resume paying your mortgage every month on a going-forward basis, plus the modest Chapter 13 payment, you can get the whole past due paid off and stop the foreclosure forever. Chapter 13 is a great solution that will for sure stop the foreclosure, and can keep it stopped forever.
If your bankruptcy lawyer files a Chapter 7 bankruptcy for you, you can expect that bankruptcy to stop your foreclosure for approximately 60 days depending on your state. That's about how long it will take your mortgage company to come into your bankruptcy case and file a "Motion for Relief from the Automatic Stay." Once the court grants the motion, the mortgage company can post your house back up for foreclosure. In Texas, the mortgage company must give you at least 21 days notice of the new foreclosure. So 60 days is a pretty safe estimate of the total amount of time you can postpone foreclosure by filing Chapter 7 bankruptcy. That should give you plenty of time to find a new place, or get your loan modification done, or whatever your plan is. The added benefit is that your Chapter 7 wipes out your debts, giving you a fresh financial start.
There are other ways to stop a foreclosure, of course. Things such as forbearance, modification, short sale, and the like. Filing bankruptcy is the only one that uses the Automatic Stay, and the only one that works all the time for all people in all situations.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Bankruptcy Lawyers Omaha NE
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment