Using a bankruptcy filing to slow foreclosure proceedings

On behalf of The Rollins Law Firm posted in Foreclosure on Thursday, October 10, 2013.

Some Mississippi residents who face foreclosure on their homes and assets have considered a bankruptcy filing as a way to stave off the process and find more time to earn the necessary funds. This is an effective delaying tactic, though it will only provide some time. The foreclosure process will be suspended by law through a process called the "automatic stay."

How effective the automatic stay will be at stalling the foreclosure depends on how often the filer has declared bankruptcy. If they have not filed bankruptcy before in the last twelve months, then the stay will last anywhere from six to twelve weeks. However, if they have partaken in the filing of bankruptcy protections within the past year, then the stay will only be for one month. After that there is no stay whatsoever, and they have to call a short notice hearing to remain on the property.

Any sale on the property will be cancelled at the time of the filing, but that does not mean that the foreclosure process needs to begin again. Once they are notified of the bankruptcy, the lender will motion the court to proceed against the property. Then, there will be a hearing date, often about thirty days after the motion is filed, where the judge will grant an order from the court for them to remove the property from the protection of bankruptcy. This can take as much as a week, but after it is over, the property will be rescheduled for sale.

It can be a good idea to discuss relocation assistance with the lender. Many institutions will disburse a few thousand dollars in order to clear the property quietly. This is a much better situation for most foreclosed people than an eviction, which will affect their credit adversely. Contacting a lawyer for those facing foreclosure may be an excellent idea to in order to receive more cogent legal advice.

Source: Fox Business, "File Bankruptcy to stall foreclosure?", Justin Harelik, October 02, 2013

Client Reviews
★★★★★
I had a wonderful experience. The staff were nice and very informative. The process was quick and easy. Very affordable for me being a single parent. Would recommend anyone there. - Lashay H.
★★★★★
The Rollins firm assisted me at a very low point in my life. After having a lot of medical issues and expenses, I found myself unable to make ends meet. Mr. Rollings and his staff worked very promptly to help. They made the process so easy to complete. - Vinester Smith.
★★★★★
Fast response and professional advice. Really great to work with and understand what a difficult time in one’s life this is. Will recommend to anyone - Bryan Aust.
★★★★★
My wife and I were in an impossible financial situation where over time, we had built up so much debt that we could no longer keep up with all the payments. We were getting further and further behind until we reached out to the Rollins Law Firm for help. They have the knowledge and expertise through their experience to handle our particular situation. Their entire team of professionals are always available to answer questions, explain your options, and then provide the legal service that you need to relieve your financial worries and get you back on the right track! I recommend the Rollins Law Firm to anyone who needs help to deal with financial struggles. - Mike Zegelien.