Can a Cleveland Bankruptcy Attorney Help you Prevent Foreclosure and the Loss of Your Home?
If you are among the millions of Americans facing economic hardship, tough financial times, mounting credit card debt or rising medical bills, and repossession or foreclosure you need help and you need it face. Everyone needs a place to call home, and shelter for protection. A foreclosure defense attorney maybe the answer.
An experienced Cleveland bankruptcy lawyer may be able to help you delay or even prevent foreclosure, allowing you to keep your home at least until you have a chance to figure things out and make a plan. This is true even if the property is up for foreclosure sale.
Consumer Bankruptcy: What is the Automatic Stay and How Does it Affect Foreclosure?
When you file a chapter 7 bankruptcy or chapter 13 bankruptcy petition something called the automatic stay goes into effect. This prevents any creditors, even those with a secured interest in your property, to attempt any collection activity including eviction, foreclosure, or repossession, until the bankruptcy court can review your financial details.
The automatic stay does not stay in place permanently, and there are some circumstances where the court will approve a motion from a creditor to continue collection activity but these are rare. Wage garnishments, bank liens, phone calls and collection letters, motions for foreclosure or repossession, and all other collection actions are prevented while the automatic stay is in place.
Chapter 7 Bankruptcy Vs Chapter 13 Bankruptcy: Liquidation Vs Reorganization.
If your goal is to prevent foreclosure permanently then a chapter 13 bankruptcy would usually be better than a chapter 7 bankruptcy at foreclosure defense. Some of the biggest difference between these two bankruptcy types include:
- A chapter 7 case typically involves the liquidation of any property that is not exempt. Any secured property, such as mortgage loans, land contracts secured by property, and vehicle loans, will usually be returned to to entity with the security interest in the property. Any remaining debt left on the loan after the property is sold is discharged at the end of the chapter 7 bankruptcy.
- With chapter 13 your finances undergo reorganization, and you will normally keep any property that you do not want to lose but you will have to pay it off in order to gain clear title. Any past due amounts owed are usually paid over a 3-5 year period. This can permanently prevent foreclosure and is the foreclosure defense. In order to file for chapter 13 bankruptcy you must have a regular income in order to make the monthly payments.
Don't Put it Off Any Longer. In Order to Prevent Foreclosure You Need to Act Now.
One of the biggest mistakes seen by Cleveland bankruptcy attorneys is clients who wait before consulting with a legal professional. If you are struggling financially and you are worried about foreclosure don’t wait. Your financial problems will not go away until you address and resolve them. Foreclosure defense can happen immediately and without hesitation due to the automatic stay.
The right Cleveland foreclosure defense lawyer will work with you to prevent foreclosure and help you keep your home. Look for someone with decades of bankruptcy experience, someone who handles this type of case every day. Who will fight for you and your home. Someone like Susan M. Gray.
Carron Nicks “Can You File for Bankruptcy If Your House Is in Foreclosure?”. thebankruptcysite.org https://www.thebankruptcysite.org/resources/can-you-file-for-bankruptcy-if-your-house-is-in-foreclosure.html#:~:text=Absolutely.,your%20other%20debts%2C%20as%20well. . Accessed 27 July 2020.
D.C. Bar Pro Bono Center “Frequently Asked Questions About Chapter 7 Bankruptcy and Home Foreclosure.” lawhelp.org https://www.lawhelp.org/dc/resource/frequently-asked-questions-about-chapter-7-ba#:~:text=Chapter%207%20bankruptcy%20is%20a,get%20rid%20of%20their%20debts.&text=Chapter%207%20bankruptcy%20will%20not,the%20bankruptcy%20case%20is%20pending. Accessed 27 July 2020.