Foreclosure is what happens when a homeowner falls behind and fails to pay the mortgage. It is a legal action where the owner loses all rights to their property and home if they cannot pay the outstanding debt. A foreclosure is basically an auction of your home on the courthouse steps. A sale date is set and if the sale is not stopped, then someone will bid on your house and become the new owner of the property. Filing for bankruptcy puts an automatic stay on all foreclosure proceedings. By contacting our attorneys, you can potentially save your home but the bankruptcy case must be filed before the foreclosure sale happens.Act Quickly
Many people have success keeping their homes by filing for Chapter 13 bankruptcy. If you file before the foreclosure sale, we can use your repayment plan as a tool to help you catch up on your delinquent payments. The biggest benefit to filing a chapter 13 is that you will not have to make a lump sum payment to catch up your mortgage. In chapter 13 you are allowed to catch up the mortgage payments over time. As long as you are able to pay your bankruptcy payment plan you would be allowed to keep your home. At the end of the bankruptcy case, you will be up to date on your bankruptcy payments.
If you are unable to afford to keep your home, or if you cannot catch up on your backlog of mortgage payments, filing for Chapter 7 bankruptcy will allow you the time to find another place to live instead of being turned out on the street. It will also allow you to walk away from your mortgage and payments in arrears without fear of the bank coming after you to collect for the money owed.
The most important thing you need to do is file as early as possible to save your home. If you wait until the last minute, we may not have enough time to prepare your case prior to the foreclosure sale. Once the foreclosure sale happens, a bankruptcy will not help you keep your home. Your lender does not even have to notify you of the foreclosure sale date. They can advertise the sale in the paper for three weeks and then sell your home without your knowledge.
The foreclosure sale can be stopped as long as a bankruptcy petition is filed prior to the sale. It is sometimes impossible to file a bankruptcy case immediately. We need many documents in order to prepare all of the necessary paperwork. If you wait until the last minute to talk to a bankruptcy lawyer, then you risk not having enough time to prepare the necessary paperwork.
Call us at 601-500-5533 or send us an e-mail to learn more about our foreclosure and how bankruptcy can prevent foreclosure on your home.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.