Foreclosure During Bankruptcy

If you file Chapter 7 bankruptcy to try to stop a foreclosure, consult an attorney to understand going through a foreclosure during bankruptcy.When you decided to file Chapter 7 to stop a pending foreclosure, it may be because you don’t have enough money to pay all your bills.You need one more paycheck, the cost of living keeps going up and your monthly paycheck isn’t keeping up with the price of gas, food and everything else you value.

You can’t save because all your money goes to paying bills but you’re juggling what you think is a pretty good balance until you receive a Notice of Default.

Maybe you hold on for another few weeks, but then a process server hands you a Lis Pendens. If you live in Florida, it means that you are facing bankruptcy and foreclosure at the same time.

Going Through Foreclosure During Bankruptcy

Before you either panic or stick your head in the sand and pretend it will all work out, meet with Winter Park bankruptcy and foreclosure attorneys Roddy Lanigan and Eric Lanigan in their Winter Park offices.

Maybe a lender has initiated foreclosure proceedings against you because you owe three months worth of back payments. So you hear from a friend who tells you to consider bankruptcy. Or a family member gets to you and said you can solve it all by filing bankruptcy.

A Chapter 7 bankruptcy may be able to wipe out all of your debts. With the guidance of Orlando bankruptcy and foreclosure attorneys Roddy Lanigan and Eric Lanigan you may be able to stop a pending foreclosure, keep your house, and the lender can’t do anything to stop you.

Or can they?

If you file for personal bankruptcy under Chapter 7 there is an automatic stay placed on all your creditors, including the foreclosing lender, by the court. But a stay is only a temporary fix.

Chapter 7 won’t permanently stop a foreclosure but it can give you relief from unsecured creditors like credit cards. It may also prevent creditors from pursuing collection actions against you.

Consult Attorney Eric Lanigan Before Filing Chapter 7

But before getting too far into the process the Lanigans will clarify that bankruptcy doesn’t discharge the following debts: taxes, child support, alimony or federal student loans, nor can it give you relief from secured creditors on your mortgage whose debt is secured by the home you’re living in.

The automatic stay is only effective when the court wants it to be in place. At any time the court can grant a lender’s motion for relief from the automatic stay. If the court grants that motion a foreclosure against your home can proceed completely.

A viable exception does exist when you file a Chapter 13 bankruptcy. In a Chapter 13 bankruptcy you are can arrange a payment plan over a three- to five-year period and usually on a lower payment schedule with some unsecured debt eliminated.

Once accepted, the creditors must abide by the terms of the plan.

Call it financial reorganization or a workout plan, but anyway you look at it a Chapter 13 bankruptcy may be a good method for saving your home from foreclosure. It may be able to stop foreclosure if you continue to make payments agreed to under the plan until all debt owed is totally paid off.

A Chapter 13 debt reorganization plan is created to cure the default and save your home. But you have to realize that not everyone qualifies to file for bankruptcy. There are certain qualifications that must be met. To be sure of what you should do consult with Orlando bankruptcy and foreclosure attorneys Lanigan and Lanigan P.L.