If you are facing foreclosure and considering bankruptcy, start the process by talking to a Bankruptcy Lawyer in Huntersville, NC to explore your options. Filing Chapter 7 bankruptcy is an option for delaying foreclosure, but will not permanently stop the process. On the other hand, it can help in other ways like preventing you from having to pay taxes on a deficiency, freeing money to pay the mortgage and delaying the foreclosure.
When you file a Chapter 7 petition, most creditors are prohibited from trying to collect on the debt. This is known as an automatic stay. Automatic stays prevent the lender from taking the property while the bankruptcy process is occurring. When the bankruptcy is complete, the lender can continue the process of trying to foreclose on the property. The lender can also ask the court to lift the automatic stay before the bankruptcy is completed. The court may allow the lender to continue with foreclosure if it is the legal holder of the deed or mortgage to the home.
You would think it is easy for the lender to prove to be the mortgage holder, but this not always the case. Mortgages are electronically repackaged, lumped together, bought and sold over the years. The institution trying to foreclose may not be able to present this information to the court, which means the automatic stay will remain in place. When the automatic stay remains in place, the debtor may get an extra 30 to 60 days. The judge can also decide to lift the stay after a couple of months into the bankruptcy and the bankruptcy can last around four months.
If you want a fresh start, the first step is to locate and schedule a consultation with an experienced Bankruptcy Lawyer at Lake Law Office. Delaying foreclosure allows for the homeowner to save money due to not paying the mortgage. The Lake Law Office, PLLC understands how to discharge other debts to free up money for the mortgage or other bills. Filing Chapter 7 cancels secured debts by the home and the mortgage. An experienced Bankruptcy Lawyer in Huntersville, NC can help with becoming financially free.