Experiencing financial hardship is stressful – – the thought of losing your home on top of that is terrifying. This is what many Americans face each day as they struggle to meet financial obligations. They lay awake each night trying to figure out a way to catch up their mortgage payments and still have enough money to feed their family. The attorneys at the Cooper Law Firm understand what it is like to worry how you can keep your home. We receive calls each day asking “Can bankruptcy stop foreclosure?” or “Can I save my home by filing bankruptcy?” Clients are relieved to hear “yes, bankruptcy will stop a foreclosure.”
Under the bankruptcy code, when you declare bankruptcy an automatic stay goes into effect that prevents creditors from taking any further action against you or your property without Bankruptcy Court approval. This includes proceeding with a foreclosure action or even a foreclosure sale when the bankruptcy case is filed prior to the foreclosure sale. Even if you just need a little more time before moving out of your home, a Chapter 7 bankruptcy case can delay the foreclosure for several months. It can also discharge a mortgage deficiency judgment so that you are not liable for any money owed after the foreclosure sale.
If you want to save your home from foreclosure, you may file a Chapter 13 bankruptcy case. Through a Chapter 13 bankruptcy, you can reorganize your debts and propose a plan to your creditors that includes catching up your mortgage arrearage (the past due mortgage payments) by making monthly payments to a bankruptcy trustee. This allows you to keep your home and get the much-needed financial relief necessary to help you get back on your feet financially. In some cases, you may even be able to eliminate a 2nd or 3rd mortgage through bankruptcy.
The Cooper Law Firm has been helping homeowners save their homes for almost 20 years. Our attorneys work with each client to find solutions to his or her financial trouble. Waiting until your home is about to be sold through a foreclosure sale is not the answer. Contact our office today to schedule a free consultation with a bankruptcy attorney. Let our office show you how you can save your home from foreclosure through bankruptcy.