If you are facing foreclosure, bankruptcy may be able to help you save your home. It can be difficult to understand your legal options when it comes to filing bankruptcy. By working with a skilled foreclosure defense attorney, you can gain confidence in your decisions. We can help you determine which type of bankruptcy is best for you to manage the foreclosure process.
Call the Law Office of Jack G. Lezman, PLLC today. We will evaluate your situation and explain the process to you.
Take Steps to Protect Your Home
If you are facing foreclosure proceedings, or believe that a foreclosure may be an imminent part of your future, our legal team of foreclosure defense attorneys at the Law Office of Jack G. Lezman, PLLC wants you to know that you are certainly not alone. In fact, millions of Americans throughout the nation have been left to endure the repercussions of a harsh and unforgiving economic climate. In Mecklenburg County alone, more than 5,200 foreclosures were filed in 2012. For local residents who face these uncertainties on a daily bases, help is nearby. By working with an experienced Charlotte bankruptcy attorney from our firm, you can equip yourself with the assistance you need to stop foreclosure and protect your home.
We have helped thousands of clients navigate through a variety of legal remedies and debt relief actions that allowed them to preserve their assets. Our firm is thus prepared to execute a number of foreclosure defense strategies. As each case is unique, we first fully evaluate your current financial situation and determine all of your available options. We then choose the most appropriate actions that best meet your needs and goals. If your goals revolve around keeping your home, then our firm is prepared to help you complete either Chapter 7 or Chapter 13 bankruptcy with this objective in mind. We can also provide advice and assistance regarding alternatives to bankruptcy as well.
Understanding Foreclosure: When Does It Happen?
If you fail to make mortgage payments for an extended period of time, you may be issued a foreclosure notice. This means that your creditor, often a bank or credit union, is going to take possession of our home and sell it at auction to recoup some of the money they lent you to buy the home. If the home sells for more than you owe, you may receive a refund of some of the money. However, if the home sells for less than you owe, you may still owe the bank after foreclosure.
The foreclosure process can take months or years to complete. However, there is a way to stop it. Bankruptcy puts a hold on all of your creditors’ debt collection actions, including the foreclosure process. When considering Chapter 7 vs. Chapter 13, you should understand how your foreclosure will be impacted.
The Automatic Stay
When you file Chapter 7 or Chapter 13, you will trigger an automatic stay, or a pause on all creditor collection efforts. The court will issue an Order of Relief. This will mandate that the bank or credit union pause the foreclosure process. This will give you time to evaluate your finances and do something constructive about the foreclosure while you proceed with a bankruptcy case.
If your housing lender was in the process of selling your house, they will be stopped for the duration of your bankruptcy. This can be different for Chapter 7 vs. Chapter 13. A Chapter 7 bankruptcy can take four to six months to complete; however, a Chapter 13 bankruptcy can take longer. The foreclosure process will only be paused during that time. However, you will have an opportunity during that time to negotiate with the bank or establish a new payment plan. It’s important to work with your attorney during this process.
There are some exceptions to the automatic stay process. If you have had one bankruptcy case dismissed within the past 12 months, then you will only have a 30-day automatic stay. Or, if you have had two or more previous bankruptcy cases in the past 12 months, you may not get an automatic stay at all. This is done to prevent bad faith filings that are done simply to use automatic stays against creditors.
Chapter 7 Bankruptcy and Foreclosure Defense
When considering bankruptcy, you may decide that Chapter 7 gives you the quickest solution. When you file Chapter 7, the foreclosure process will pause, and you will have an opportunity to evaluate your finances. You may try to work out payments with your mortgage creditor, or you may voluntarily relinquish your house. Either way, you can gain better footing and avoid the forced foreclosure process.
If you fail to deal with your foreclosure during Chapter 7 bankruptcy, you may face it again when your bankruptcy is complete. Your creditors may continue collection efforts if your debts are not handled through the bankruptcy and they remain after your bankruptcy concludes.
Chapter 13 Bankruptcy and Foreclosure Defense
Both Chapter 7 and Chapter 13 can be complex when deciding what to do with your house. If you want to keep your house and stop the foreclosure process completely, Chapter 13 bankruptcy may be a good option for you. Through Chapter 13 bankruptcy, you can roll any arrearage on your mortgage forward into your repayment plan. If the court approves and your creditors do not object, you may be able to establish more manageable payments for your mortgage arrearage. The foreclosure process will thus completely stop.
During your three to five year repayment plan, you will still have to make regular payments on your mortgage to keep it current. If you fail to make payments and get behind again, you may face foreclosure in the future. Make sure your repayment plan and monthly expenses are all affordable by completing credit counseling and working with your attorney.
Charlotte Bankruptcy Attorneys Who Deliver Results
At the Law Office of Jack G. Lezman, PLLC, we understand how difficult these experiences can be. We have worked closely with local residents throughout the years. We know that foreclosure proceedings and financial uncertainty are often the result of significant setbacks and unforeseen circumstances. This is why our legal team remains compassionate when working with the individuals and families we represent. And that is also why we work tirelessly to deliver the personal attention and results they deserve.
All of our team’s collective efforts are geared toward achieving your unique needs and objectives. If your goals include keeping your home, then you can be confident that we possess the skills and extensive foreclosure defense experience needed to protect your house. Foreclosure defense is not an overnight process and may not be an option for everyone. However, we will work hard to resolve your struggles and deliver debt relief in any way we can.
Contact our Charlotte bankruptcy lawyer from the Law Office of Jack G. Lezman, PLLC learn more about foreclosure defense.