Bankruptcy And Foreclosure: Everything You Want To Know

When homeowners are forced into bankruptcy due to foreclosure, they often lose their homes because they are the most valuable and have the highest monthly expenses, even though other households don't have enough value to sell. only will be featured. Cars are the second-most valuable asset that tends to be lost in bankruptcy.

Housing is usually your largest monthly expense, but there are ways to protect your home from being foreclosed on by creditors by working with the major companies that issued your mortgage. If you file for bankruptcy after a foreclosure notice has been issued, the foreclosure process on your home will be stopped, even if a sheriff's sale is scheduled. Bankruptcy is a constitutional right defined by law to protect businesses and individuals who are unable to meet their financial obligations.

Both Chapter 13 and Chapter 7 bankruptcy can protect your assets, such as your car, while preventing creditors from harassing you and seizing your assets. This is why you need the help of a foreclosure defense attorney who knows when and how to use bankruptcy filings to your advantage. After notification of bankruptcy (lis pendens), we recommend calling a Long Island foreclosure attorney. The lender has the right to demand the full balance of the defaulted mortgage and refuse monthly payments. This is called accelerated debt and should be avoided unless you are comfortable with it if it could be used to your advantage. For example, you can force your bank to work with you on a HAMP/HARP loan modification on your home. This can result in a foreclosure in New York. To find out what applies to your situation, talk to a foreclosure attorney at Patel & Solitis, LLP.

Even after a homeowner defaults, it is important to communicate and reach an agreement with the lender. Loan modifications in New York are performed by New York attorneys. Once Penders issues a notice of default, the lender has the right to foreclose on the home and will need the help of a foreclosure law firm to protect its rights.

In some cases, bankruptcy proceedings may be used to halt foreclosure proceedings. When a bankruptcy petition is filed, an automatic stay order is issued that prohibits all creditors from pursuing claims such as foreclosures and sheriff's sales. If you file for bankruptcy to stop sheriff sales, you should not insist on filing a bankruptcy petition right away. If your lawyer is going to charge you more than $1,250 to file for Chapter 13 bankruptcy, you need to find a bankruptcy lawyer who won't take a penny out of your pocket. Foreclosure cannot be effected if a bankruptcy petition is filed in the United States prior to the foreclosure date. A Chapter 13 bankruptcy plan allows you to make regular monthly payments and gives you a reasonable amount of time to bring your loan payments up to date. This will prevent your property from becoming too large and your home from being taken over and sold to another seller. If a bankruptcy petition is filed before the foreclosure date, foreclosure may be avoided as long as the arbitrator is notified of the claim prior to the sale.

It is important that homeowners begin the bankruptcy process quickly and are able to make their first escrow payment after filing bankruptcy. He may have one year after the notice of default is served on the homeowner before the bankruptcy filing is filed. However, it is easier to repay a mortgage if he is delinquent for a short period of time than if he is delinquent for a year. After this notice is issued, your apartment is at risk of being repossessed without the help of a law firm. The bankruptcy petition must be filed before the sheriff's sale date for it to be valid and the foreclosure to be stayed. Bankruptcy after the foreclosure date often does not prevent the home from being foreclosed and sold to another buyer, and the previous homeowner is evicted.

People often wonder which option is worse for a homeowner's credit score: bankruptcy or foreclosure. It's important to remember that both can negatively impact your credit score for up to seven years, but bankruptcy can be the key to protecting your investment and your home from creditors. The key is to find out what your current balance is and what it will look like 12 months after filing for bankruptcy. After filing for bankruptcy and making the required payments, many people see their credit score increase by 100 points. Once a foreclosure occurs, many people's credit scores decline at an alarming rate. Bankruptcy can be the fresh start you need to rebuild your credit, stop harassing phone calls, and preserve the highest-value assets you own.

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