Sample Creditors Intent to File Motion to Lift Stay Letter to Client
Dear Mr. & Mrs. Debtor:
Creditor has advised our office of their intention to file a Motion For Relief From Automatic Stay with the Bankruptcy Court, in order to begin foreclosure proceedings on your home. [Creditor|Name] claims you are past due in your mortgage payments for the months of , plus late fees. Creditor will seek attorney fees and court costs if this matter proceeds to a court hearing.
If you have made any of the above payments, please provide the proof of payments (canceled checks, money order receipts, bank statements, etc.), to my Paralegal, Joni S. Clemens. I will need your proof of payments to object to Creditor’s Motion For Relief Of Stay if this matter proceeds before the Bankruptcy Judge.
If you have not made any of the above payments, it may be possible to work an agreement whereby you pay back what you owe over a 6 month period. This would require your making an additional payment in addition to your regular monthly mortgage payment.
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If you cannot make both your mortgage payments and the additional payments, I would like to suggest some other bankruptcy options:
1. Refinancing Your Home At A Lower Interest Rate. I would need a proposed contract and request the Bankruptcy Judge to approve the new loan;
2. Selling Your Home. I would ask the Chapter 13 Trustee’s office for approval of the sale. Usually, the Trustee’s office has no objection in allowing debtors to sell their home.
3. Surrendering Your Home. This process would involve your converting to a Chapter 7 bankruptcy whereby you allow your house to go back to the mortgage company, and wipe-away all the debt.
4. Converting To A Chapter 7 Bankruptcy. This conversion would allow you to wipe-away ALL your unsecured debts, and have no payments going to the Trustee. You could keep your home; however, you would need to become current with your arrears before converting to the Chapter 7. About six months after your conversion, your financial life can begin again! Should you consider this option, please make an appointment with our office to discuss the Chapter 7 conversion.
Thank you for your time and attention to this matter.
Sincerely,
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