Bankruptcy Can Stop Foreclosures

Written by Adam Peck Category: Nursing Homes January 17th, 2013 3 min read

Bankruptcy is an action which must be done after a good research and preparedness. It’s clear that filing bankruptcy certainly stops the process of foreclosure but the way it accomplishes this feat must be watched closely. We will concentrate here on Chapter 13 of the United States Bankruptcy Code.

By knowing the process of applying a bankruptcy a person can get clear whether it will stop foreclosure or not. Bankruptcy from the Chapter 13 allows the mortgagor to extend his payment period by 3 to 5 years. The repayment capacity plays an important role, and it can clear of some debts. This happens only with some cases where an item is not an asset. This includes the automobiles.

First step is to petition the court to accept the Chapter 13 filing. The court is not required to accept it, but if does then an appointed trustee decide the repayment schedule. It is not accepted if the petition is filed in recent time or if it does not qualify. Once the petition is accepted the trustee divides the wealth that the lender can share with the home owner. By doing so the owner loses the ability to sell his / her house without proper authorization. Considering foreclosure this is a far better state and thus you can avoid foreclosure.

If he plans to sell the house then he must sell it in a Fair Market Value. The trustee estimates the houses value so as to stop selling the house below the market values. Even if a sale with low market value takes place then it can be nullified and deal can be cancelled. This will be uncomfortable for both buyer and seller.

The lenders are aware of the bankruptcy filing. When the Chapter 13 Bankruptcy petition is filed, the lenders attorney files a petition for relief of the automatic stay pursuant to 362(a) based upon the ability of the debtor to make the necessary payment purusnat to the Chapter 13 Bankruptcy plan, should the chapter 13 Debtor miss a payment, then the creditor could move the court to have the Banruptcy dismissed. The foreclosure process will re-commenc, delaying the original foreclosure..

The bankruptcy will badly affect your repayment capacity and it will be associated to your account for ten years instead of seven. It will also be stored in your public record for twenty years. These records can be accessed by any high authorities so better mention it in any legal forms or job applications. Bankruptcy is a short term fix for the foreclosure and it is not a solution. For more specific assistance, try consulting an experienced attorney if you consider bankruptcy as a safe option to exit.

Contact Steven peck’s Premier legal toll free to talk to an experienced California Bankruptcy Attorney toll free at 1.866.999.9085 and visit us on-line at www.premierlegal.org.

Share it

Questions? Check with Peck Today

Blog Lead Form

Elder Abuse and Neglect in Assisted Living Facilities

Elopement in Nursing Homes

Assisted Living Abuse

Settlement Reached in Assisted Living Facility Death

Assisted Living Abuse and Neglect Attorneys

Written by Adam Peck

Expertise: Personal Injury

Adam J. Peck, ESQ is a principal with Peck Law Group, APC. In 2008, Mr. Adam Peck received his Juris Doctorate from Whittier Law School where he graduated Cum Laude. His practice is primarily dedicated to representing Elders, Dependent Adults, along with their loved ones and family members, who have suffered horrific personal injuries.