The Automatic Stay: Delaying Foreclosure
When you file either a Chapter 13 or Chapter 7 bankruptcy,
the court automatically issues an order ( Order for
Relief) that includes a wonderful thing known as
the “automatic stay.” The
automatic stay directs your creditors to cease their
collection activities immediately, no excuses. If
your home is scheduled for a foreclosure sale, the
sale will be legally postponed while the bankruptcy
is pending.
Foreclosure
If you have been served with a complaint to foreclosure on your home, your options are limited. First, you can negotiate with your mortgage company to reinstate the mortgage. Secondly, you can file under Chapter13. Thirdly, you can sell your home or attempt to refinance. Fourthly, you can give up and get out of your home. Finally, you can fight the foreclosure.
The first two options assume that you can afford your current monthly payment, and selling or refinacing your home may be impossible if you have little equity or even negative equity.
Many homeowners, especially those with subprime mortgages, can no longer afford the mortgage payments, even if the mortgage were current. That makes a Chapter 13 bankruptcy possible under the Home Owners Relief Act of 2009.
A Bankruptcy Attorney can help, even if you are behind on your payments, and cannot afford the current monthly payment. As under the new law a Judge in Bankruptcy Court can now modify the principle on your primary residence.
United States Bankruptcy Courts
Bankruptcy cases cannot be filed in state court. Bankruptcy laws help people who can no longer pay their creditors get a fresh start by liquidating their assets to pay their debts, or by creating a repayment plan.
Bankruptcy laws also protect troubled businesses and provide for orderly distributions to business creditors through reorganization or liquidation. These procedures are covered under Title 11 of the United States Code (the Bankruptcy Code). The vast majority of cases are filed under the three main chapters of the Bankruptcy Code, which are Chapter 7, Chapter 11, and Chapter 13.
See the links on the right
for more information about debtors,
creditors, and different aspects of the federal bankruptcy laws.
Foreclosure
Defense Save Your House...
Information
Source: U.S. Bankruptcy Courts
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Mortgage
Modification- This term has been getting a lot of attention lately and rightfully so. With millions of homeowners stuck in toxic adjustable rate mortgages and no ways to refinance out of them, loan modifications may be the only way to assist struggling borrowers.
