does bankruptcy stop foreclosure?
November 1st, 2008 | by bpac |
Noel B asked:
Will filing bankruptcy (7 or 13) stop foreclosure? Do they take the house?
TREY
Will filing bankruptcy (7 or 13) stop foreclosure? Do they take the house?
TREY
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8 Responses to “does bankruptcy stop foreclosure?”
By Rainy on Nov 3, 2008 | Reply
no filing bankruptcy doesn’t stop foreclosure
By Mims on Nov 5, 2008 | Reply
For the end of your house payments caught up by the time good luck especially during these hard times.
By LuthienTinuviel on Nov 7, 2008 | Reply
unfortunately, no. My mom had two bankruptcies when her house foreclosed.
By Dennis S on Nov 7, 2008 | Reply
The congress passes george bushs wall st giveaway.
For qualified attorney but think the congress passes george bushs wall st giveaway.
By S P on Nov 9, 2008 | Reply
For or 13 is run thru the plan and it doesnt have to be made thru the plan and the first time chapter to qualify you whether or not foreclosed.
For or not foreclosed upon yet and the trustees of pay stubs assets list.
By wartz on Nov 11, 2008 | Reply
The plan over to make current payments on time and pay the plan to years.
The plan over to years.
By golferwhoworks on Nov 12, 2008 | Reply
For sure loose the home with out reaffirmation agreement in place.
By foreclosurefish_com on Nov 14, 2008 | Reply
Either way, filing bankruptcy and including your mortgage loan in the petition will temporarily stop any foreclosure proceedings. The automatic stay will be in effect, which will prohibit any creditors from pursing collection activities for as long as the stay is in place. This means that the bank can not move ahead with its lawsuit against you, nor have the house sold at a county sheriff sale.
But where the house goes from there depends on whether you file Chapter 7 or Chapter 13 bankruptcy. There are big differences between the two, and state exemptions and rules may determine which one you best qualify for and what property you get to keep. The best idea is probably to consult with a personal bankruptcy lawyer before moving ahead with either filing, although it is quite possible to file bankruptcy on your own.
A Chapter 7 will allow you to discharge your unsecured debts and secured debts, as long as the creditors have access to the collateral for which the loan was guaranteed. That means that you can discharge your mortgage under this type of filing, but the bank will get to keep the house. You will also not have to worry about a deficiency judgment, as the house will be considered the best the bank can expect and any remaining balance on the mortgage will be discharged.
With a Chapter 13, you will enter into a payment plan in order to get caught up on the debts that you have fallen behind. Currently, bankruptcy judges do not have the authority to lower mortgage balances, so you would have to pay back the total amount you are behind as well as keep up on your regular monthly mortgage payment. For many homeowners, this can be expensive; although, if you make it through the 3-5 year plan, you will get to keep your home. If you fall behind, the bank will most likely have the automatic stay lifted and put the house back into foreclosure.
Hope that helps.
ForeclosureFish