Just Ask Jude Foreclosure & Bankruptcy
Foreclosure & Bankruptcy FAQ's
Will bankruptcy stop the foreclosure of my home or can they still take it?
When you file Bankruptcy, you receive an "automatic stay" on court actions such as foreclosures and sheriff's sales. A creditor can still go into court and ask the bankruptcy judge for a "relief from stay", and if granted the creditor can proceed with court action to foreclose.
What are the reasons a judge would allow creditors to take my home after I have filed for bankruptcy?
If you filed a chapter 7 bankruptcy. If you fail to file a reorganization plan or other required documents on time,if you default on your scheduled Chapter 13 or Chapter 11 payments. If your income is insufficient to execute a reorganization plan within the court's guidelines. Also, if the asset in question will not be needed to reorganize or the value of the asset is rapidly eroding.
Aside from bankruptcy, what other options do I have to avoid foreclosure?
You can try to work with your lender to see if you can get a loan modification or loan forebearance. Before making any decision, you should make sure
Can they still take my house, even if I am current on my payments?
Bankruptcy Chapter 7 exemptions apply only if you have equity (your current home value minus costs of sale less balance on mortgage or other liens) in the property. If your home equity exceeds the State or Federal exemption, you may lose the home. However, if you have no equity in the house, it cannot be used to pay off your debts. In this case, you can keep the home as long as you pay the mortgage. |
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