Q2 Will The Trustee Immediately Sell My House
If you have significant nonexempt home equity you cant protect, the trustee will sell your property, following the usual real estate selling process. The trustee doesnt need to rush the sale because a quick sale would usually result in lesser value for your home, which is not going to benefit you.
Free New York Foreclosure Bankruptcy Attorney Consultation
Two bankruptcy chapters are particularly relevant in the context of a foreclosure Chapters 7 and 13. One or neither of these may be the right step for you depending on your specific situation. The primary difference between the two is the form of bankruptcy that is taking place Chapter 7 involves liquidating your assets, whereas Chapter 13 involves reorganizing your finances. Basically, this means that in a Chapter 7 bankruptcy, some of your assets will be sold to pay off your debts, whereas in a Chapter 13 bankruptcy, your repayment plan will be restructured to better accommodate your financial situation. Chapter 7 bankruptcy is the most common type of bankruptcy filing and may be the right choice for those who own few assets and have a modest income. Homeowners who want to retain their property, however, should probably look to Chapter 13 bankruptcy. Its important to understand all of the requirements and consequences before filing for a chapter.
There are a lot of things to consider when deciding how to proceed. If you need a lawyer for foreclosure defense in New York, its crucial that you consult with someone knowledgeable and competent in this area. Get a free consultation from one of the best in Greater New York. Yuriy Moshes has years of experience successfully helping hundreds of homeowners. Real estate attorneys are required to be knowledgeable in several branches of the law. A free consultation with our firm could give you the ease of mind you need.
How Many Times Can You File For Bankruptcy To Stop A Foreclosure Sale
Theres no limit set on the number of times you can file bankruptcy to stop or avoid foreclosure. However, you need to wait a set number of years since your last bankruptcy case to file another one. For instance, it takes 8 years before you can file another Chapter 7 bankruptcy if your first case is the same type. If you filed Chapter 13, you can file for another Chapter 13 after 2 years.
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Bankruptcy And The Automatic Stay
The automatic stay is the part of the bankruptcy law that bans creditors from taking any kind of collection action once a bankruptcy case has been filed. Thatâs not just limited to wage garnishments and phone calls it stops a foreclosure proceeding dead in its tracks. Someone can file bankruptcy today to stop a foreclosure sale scheduled for tomorrow morning.
But, thatâs not the entire story. Real estate loans are secured debts and the type of bankruptcy you file determines what you can do from there.
Can Bankruptcy Stop Foreclosure On My Home
If you are facing foreclosure on your home in 2021, you arent alone. The economic downturn of 2020 has led many homeowners to get behind on their mortgage payments. You now may be considering your options, hoping for a way to avoid foreclosure. Seeking bankruptcy is one option you should consider.
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How Can I Stop Foreclosure
There are only a few ways to stop foreclosure, and they should all be considered temporary. There is no way to prevent foreclosure indefinitely once you are behind in your payments unless you are in extreme circumstances related to fraud or deception in regard to your loan.
First, request that the lender delay foreclosure proceedings. Once these have started, they can be difficult to stop, so ensure that you act quickly. You may be able to get the court to order a delay, but you will need a valid justification, such as a recent injury, illness, or hardship. However, it is usually favorable to have the lender delay the foreclosure voluntarily.
Second, begin negotiating a workout or loan modification. After all, the lender wants their loan repaid not your house! A loan workout or modification is simply a negotiated agreement between the lender and the borrower to make it possible for you to keep your house. This could involve mortgage modification, which can lower monthly payments, interest rates, principal, and reducing or even eliminating fees and penalties.
If you have been the victim of predatory lending practices, you may have more options available. Loan flipping, mandatory arbitration, unfair denial of modification, and unfair penalties are methods predatory lenders utilize to extract more money from you. Cases like these are where an attorney can really make a difference in the outcome and possibly even stop foreclosure.
If You Need To Stop Foreclosure In A Hurry You Can File An Emergency Bankruptcy Petition
By Baran Bulkat, Attorney
My husband and I have been discussing filing for bankruptcy for some time, but recently we received a notice of foreclosure from our lender. What do we need to do to file an emergency bankruptcy petition to avoid foreclosure and buy us some time?
If your mortgage lender is about to foreclose, filing an emergency bankruptcy petition can delay or stop the foreclosure process. It could give you more time to negotiate with the bank.
Keep in mind that while Chapter 7 will stop a foreclosure, it will be temporary. If you’d like to keep your home, Chapter 13 will likely be the better option. Read on to learn more about how to file an emergency bankruptcy petition will stop a foreclosure sale and about important bankruptcy procedures.
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Will Filing Chapter 13 Bankruptcy Stop A Foreclosure
It can be devastating to lose your home in a foreclosure. Fortunately, filing Chapter 13 bankruptcy is an excellent option that can save your home. Chapter 13 can give you the opportunity to reorganize your debt to make it more manageable. This debt includes payments you are making on your mortgage.
Which Type Of Bankruptcy Is Right For Me
Selecting the right type of bankruptcy is essential to it serving its purpose in your foreclosure defense. Choosing between the popular chapter 13 and chapter 7 bankruptcies and the new hybrid chapter 20 bankruptcy can be a challenge. Fraud Stoppers PMA has a resource online highlighting the major differences between a chapter 13 and chapter 7 bankruptcy.
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Getting Help From Foreclosure Defence Attorney
If you need a lawyer for foreclosure defense in New York, its crucial that you consult with someone knowledgeable and competent in this area. Get a free consultation from one of the best in Greater New York.
Yuriy Moshes has years of experience successfully helping hundreds of homeowners. Real estate attorneys are required to be knowledgeable in several branches of the law. A free consultation with our firm could give you the ease of mind you need.
Q1 How Does The Trustee Decide To Sell My House
The trustee may or may not sell your home depending on its equity value. If its less than the exemption amount, then the trustee must not sell your house. If you have significant equity left, the trustee will sell it.
The goal of selling your property is to get funds that can be used to pay off your unsecured debts. If your home gets sold, the trustee must give you first the exemption amount before paying your debts to the creditors.
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The Pennsylvania Homestead Exemption
The Pennsylvania exemptions do not include a homestead exemption. However, married couples could own property as tenants by the entity . Under this classification, both individuals own 100% of the property. This distinction is important because of the rights creditors have in Pennsylvania.
When creditors sue to collect a debt, they are entitled to a judgment lien on any real property a debtor owns, including their home. However, if the debt is only in one spouses name, a judgment lien is not entered against a TBE property. This protection extends to bankruptcy.
To illustrate, imagine a couple filing for bankruptcy with a $200,000 mortgage-free home. If they share credit card debt or personal loans, they could lose their home if they file for bankruptcy. However, if one spouse owes the credit card debt and the other owes the personal loan, they could take advantage of Pennsylvanias TBE exemption to protect their home. It is important to note that Pennsylvanias exemptions are not as generous as the federal ones, so there could still be other issues depending on the couples other property. Our Pennsylvania bankruptcy attorneys will have to thoroughly review your assets to determine if the Pennsylvania exemptions are the best option.
Keeping Your Home In Chapter 13 Bankruptcy
The good news about filing for Chapter 13 bankruptcy is that its designed to allow you to keep your house. With Chapter 13, you, the bank and your creditors all decide on a repayment plan that takes three to five years, but your assets are not sold off. Once the plan is completed, your unsecured debt is discharged. The trick, of course, is making it to the end.
The plan that is worked out with the court and your creditors will include a way to catch up on and pay your mortgage if you can afford it.
Under a Chapter 13 repayment plan, if youre behind on your mortgage the plan will work out how you pay the past due payments over the three to five years, but you also must make the current monthly payments.
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Can Filing Bankruptcy Stop Foreclosure On My Home
Filing a Chapter 7 or a Chapter 13 bankruptcy will both temporarily suspend any action by your lender regarding the foreclosure on your home. When you file for bankruptcy relief, you are protected by the Automatic Stay provisions of the U.S. Bankruptcy Code which prevents certain creditors from pursuing collection activity. A foreclosure is a collection activity. Therefore, your bank will not be able to move forward with the foreclosure until the Automatic Stay has expired or the creditor has obtained relief from the Automatic Stay through the Bankruptcy Court.
Can filing bankruptcy stop the bank from taking my home through foreclosure?
Filing a Chapter 7 or a Chapter 13 bankruptcy may help you save your home from foreclosure. First, the filing of the bankruptcy case will temporarily stop any foreclosure activity by your mortgage creditor as a result of the Automatic Stay provisions of the U.S. Bankruptcy Code. This temporary break could provide you with enough time to get caught up on your payments or negotiate with your bank. It may also provide you with the opportunity to get rid of a burdensome second mortgage if the value of your home has significantly decreased. In a Chapter 13 Bankruptcy, you can catch up on your late payments interest free over a 3 to 5 year time period.
Facing Foreclosure Have A Local Attorney Review Your Legal Options
If you’re facing a foreclosure and concerned about your financial future, remember that a bankruptcy filing may help you keep your home or at least soften the blow. You can learn more about your options by meeting with a bankruptcy attorney, who will understand your financial needs and work to make the process as painless as possible. Find a local bankruptcy attorney today.
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How Chapter 13 Bankruptcy Can Help
Many people want to remain in their home and will do whatever they can to stay in their home for the indefinite future. If that describes you, and you’re behind on your mortgage payments with no feasible way to get current before foreclosure, the only way to keep your home is to file a Chapter 13 bankruptcy.
How Chapter 13 works. Chapter 13 bankruptcy lets you pay off the “arrearage” over the length of a Chapter 13 repayment plan you proposefive years in most cases. But, you’ll need enough income to meet your current mortgage payment in addition to paying off the arrearage. Assuming you make all the required payments up to the end of the repayment plan, you’ll avoid foreclosure and keep your home.
2nd and 3rd mortgage payments. Chapter 13 bankruptcy might also help you eliminate the payments on your second or third mortgage. Here’s how it works. If your first mortgage is secured by the entire value of your home , you might no longer have any equity with which to secure the later mortgages. That allows the Chapter 13 court to “strip off” the second and third mortgages and recategorize them as unsecured debtwhich, under Chapter 13 bankruptcy, takes last priority and often does not have to be paid back at all. As home equity rises, this approach is used less frequently.
How Equity In A Home Can Impact A Pennsylvania Bankruptcy Case
It is important to understand how your homes equity impacts a bankruptcy case. If you are filing Chapter 13 to stop a foreclosure and have no other debt, then the amount of equity in your home will not influence your bankruptcy case. However, if you have significant equity and want to file Chapter 7 to discharge credit card or medical debt, the equity could be a problem.
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Chapter 13s Impact On Foreclosure
If youre determined to keep your home and the foreclosure proceedings are still in the earliest stages, chapter 13 may be the answer. Often called reorganization bankruptcy, chapter 13 helps debtors regain their financial footing by making their month-to-month obligations more manageable.
Whereas chapter 7 requires petitioners to liquidate nonexempt assets in order to pay back creditors, chapter 13 allows them to implement a three- to five-year repayment plan. As long as you can roll your past-due mortgage payments into this planwhile also keeping up on current paymentsyou should be able to keep your home.
Although theres no way around catching up on your mortgage if you want to avoid foreclosure, it may be possible to eliminate other debts that were secured by your house during the chapter 13 proceedings. Through a process called lien stripping, petitioners are often able to eliminate subsequent mortgages.
If there is not enough equity in the property to cover these additional loans, they can be recategorized as unsecured debt. In chapter 13 proceedings, such debts have the lowest priority, and any balances that remain at the end of the repayment period are discharged.
Youll Probably Get To Keep All Of Your Stuff
Folks in more than 95% of all Chapter 7 bankruptcies filed in the United States keep all of their belongings. Thatâs because the law protects certain property called exempt property from your creditors. Whether thatâs your monthly social security check, your watch, or your kitchen table, if itâs protected by an exemption, you get to keep it.
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Filing For Chapter 7 Or Chapter 13 Bankruptcy
If you file a Chapter 7 bankruptcy, you can probably keep the home if you’re current on the mortgage payments and you don’t have much equity. But you’ll likely lose the home in the bankruptcy if there’s significant equity. If you’re behind on your mortgage payments, you’ll likely eventually lose your home to foreclosure, even if the bankruptcy trustee doesn’t sell the home. If you’re planning on letting the home go in foreclosure, filing for Chapter 7 bankruptcy can delay foreclosure for a short period.
In a Chapter 13 bankruptcy, the debtor pays all or a part of debts over time through a repayment plan. With this kind of bankruptcy, you can pay off a mortgage arrearage over the duration of the repayment plan, typically three or five years, depending on your income and the time it will take you to meet all the plan’s requirements. Filing for Chapter 13 bankruptcy is especially helpful if you’re behind in mortgage payments, want to keep your home, and need time to get current on payments.
Using Bankruptcy To Avoid Foreclosure Temporarily
Will bankruptcy stop foreclosure? Yes. Whether you file for bankruptcy under Chapter 7 or Chapter 13, a court order called the automatic stay goes into effect as soon as you file your paperwork. The stay stops all collection actions against you, including foreclosure proceedings like the state court entering any orders regarding foreclosure and permitting the foreclosure sale of your home to move ahead.
However, creditors can file a motion to lift the stay, which allows them to bypass the stay and proceed.
Motion to Lift Stay
The lender can file a motion with the Bankruptcy Court to lift the stay, which asks permission to continue with the foreclosure sale. If this is granted, you may not receive the extra three to four months of time bankruptcy would ordinarily provide you. However, as with any motion, you will have an opportunity to oppose the papers the lender files , and it takes time for the motion to be filed and heard.
Thankfully for many borrowers, the amount of time for courts to hear and decide on all motions has been extended recently due to the global COVID-19 pandemic, which has slowed court proceedings and also led to state and local protections against any actions that could result in the eviction of Texans from their homes.
Filing of Foreclosure Notice Before Bankruptcy
Texas laws require lenders to give homeowners ninety days advance notice before selling off their property. See Texas Property Code §51.0001.
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