Bankruptcy and Foreclosure FAQ
A San Francisco bankruptcy lawyer provieds a Bankruptcy and Foreclosure FAQ
Can filing bankruptcy stop a foreclosure?
Yes. Filing a bankruptcy petition prior to the sale of a foreclosed home stops the foreclosure process. Bankruptcy and foreclosure are closely related in the sense many individuals look to bankruptcy to help discharge debts and stop adverse actions against them. When the bankruptcy petition is filed a stay automatically goes into effect.
What is a stay?
A stay is a type of injunction (a court order preventing action) that automatically stops lawsuits, garnishments, most collection activities, and home foreclosures. This is an important tool for individuals who risk losing their home to a foreclosure because it will buy them some time in order to rearrange their financial situation to catch up on missed payments.
Are stays available in a chapter 13 case?
Yes. It is advantageous to file a chapter 13 bankruptcy when the debtor is behind on their mortgage payments because the chapter 13 plan will allow for the individual to catch up on missed payments. With bankruptcy and foreclosure the intention of the debtor is to remain in the house and stop the bank from proceeding with a sale of the property. When dealing with bankruptcy and foreclosure it is important to evaluate your individual finances in order to determine what protections are available under the bankruptcy code.
What happens after the Chapter 13 plan is completed?
Generally with bankruptcy and foreclosure, the termination of chapter 13 payments does not mean the debtor is now free of their mortgage. Instead, what a chapter 13 repayment plan allows for is the individual to catch up on past-due mortgage payments. There is still a continued obligation to make the mortgage payments if the individual wishes to keep the home.
Is it possible to lose my home during bankruptcy?
Yes. Even if the individual facing foreclosure files the bankruptcy petition in time to have the automatic stay go into operation, if the individual fails to make his or her regular mortgage payments that are due after the filing, the bank (or other lender) has the option to foreclose on the property.
If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!
