When seeking bankruptcy protection, keeping your home out of foreclosure is one of the ways in which your life can remain somewhat normal. However, mortgage lenders can be relentless in trying to foreclose on your home at a time when you have numerous other financial challenges to address.
Fortunately, there are some options available, and filing an emergency bankruptcy petition can delay or stop the foreclosure process. It can even give you more time to negotiate with your bank. And during a Chapter 13 bankruptcy, you may able to be able to stop the foreclosure process and address your mortgage default before lenders foreclose on and sell your home.
Generally, how quickly a home can be foreclosed on depends on the circumstances. You should read any foreclosure notices carefully to determine the sale date, as California law requires lenders to give individuals who are filing for bankruptcy adequate notice of the default. They must also wait a certain period of time before a foreclosure date may even be set.You should also know that once you file for bankruptcy protection under Chapter 7 or Chapter 13, an automatic stay goes into effect. This prevents lenders from proceeding with a foreclosure sale temporarily — although it provides little assistance if your home has already been sold.
You should also know that once you file for bankruptcy protection under Chapter 7 or Chapter 13, an automatic stay goes into effect. This prevents lenders from proceeding with a foreclosure sale temporarily — although it provides little assistance if your home has already been sold.
In addition to possibly stopping a foreclosure sale, filing for Chapter 13 bankruptcy also gives you the opportunity to catch up on any missed mortgage payments through your bankruptcy repayment plan. This plan typically lasts three to five years and gives filers an opportunity to address a default over a longer period of time.
Although an emergency bankruptcy petition may not be a long-term solution to your financial challenges, it may help you keep your home. If you could use legal assistance with this difficult issue, consult with D. Max Gardner, an experienced Bakersfield bankruptcy attorney 661-888-4335
