Steps for Stopping Home Foreclosure
In Texas, foreclosure takes place the first Tuesday of every month, even if it falls on a holiday. In other states, foreclosure can take place any day of the month. If a Debtor is contemplating filing a Chapter 13 bankruptcy to stop a foreclosure, it is important to read all mail received from the mortgage company and any attorney’s office that might be representing the mortgage company to find out the date of the foreclosure.
In order to stop a foreclosure by filing Chapter 13 Bankruptcy, the case must be filed before the foreclosure takes place. I have had many Debtors who come in my office in an attempt to save their house only to find out the house was foreclosed on the previous month and the letter they are now receiving is an eviction letter. Filing Bankruptcy cannot reverse a foreclosure. However, if the house has been foreclosure on, filing Chapter 7 or Chapter 13 Bankruptcy (depending on if the Debtor has any other secured debt that he is behind on) would still be beneficial.
The Bankruptcy does not prevent the eviction, but it will stall the eviction for about 30 days, which should be long enough for a Debtor to find a new place to live. Also, if there is a deficiency or a balance still owed on the house after the foreclosure, filing bankruptcy will take care of the debt. The can also be tax implications on a deficiency balance that will be taken care of by filing bankruptcy.
If your house is up for foreclosure and you need to talk to an attorney and live in one of the following places, please click on the link for additional information:
Information in Florida Area
Information in the Boston Area
Information in the Georgia Area
Please fill out our free evaluation form to determine if bankruptcy is right for you.
