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Home :: Foreclosure Options :: Bankruptcy Protection Filing
Bankruptcy protection foreclosure help
NOTICE- The contents of this website are not to be intended to be legal advice nor should they be considered such. Please consult an attorney prior to taking any action. Always consult an attorney prior to entering into any contract or agreement.
Bankruptcy Protection
If you are considering a bankruptcy filing, consult a competent bankruptcy attorney prior to doing anything. A well trained attorney is well versed in the various nuances and procedures and can insure a more predictable outcome.
Each county or municipality has a Federal Courthouse assigned to it. The Federal Courthouse is where bankruptcy protection is filed for. This is a different court than State Court. State Court is where your foreclosure action was (or will be) filed.
Once your bankruptcy is filed and you receive a case number, you or your attorney, can then immediately deliver notice of the bankruptcy filing to the clerk of the court (or assistant clerk) where your foreclosure action is pending.
The State Court action (the foreclosure action) must come to a stop. No further hearings can be scheduled, no rulings on pending motions can be delivered, nothing further can occur until the bankruptcy is discharged, dismissed or the “stay” is lifted against that particular property. The “stay” is the power of the bankruptcy court to stop any and all collection activities against the petitioner (a petitioner is the homeowner seeking bankruptcy protection).
Generally, the filing for bankruptcy protection will stop the foreclosure action for only a short time. The lender’s (also referred to by the court as the plaintiff) attorney will, immediately (depending upon the type of bankruptcy you flied for, usually either chapter 7 or 13) upon the filing of a bankruptcy, ask the bankruptcy court for a “relief from stay”.
The lender’s attorney would argue to the court that this particular property is the security for a note and that the property should be allowed to be sold to satisfy the debt. Sometimes the court will allow the sale of the property to continue so long as the lender agrees not to enforce the collection of any deficiency that might be the result of a foreclosure sale.
Please consult a qualified attorney for any legal advice regarding how bankruptcy might affect a pending foreclosure action.
The above outline shall not be construed as legal advice. Please consult a qualified attorney prior to entering any contract or agreement.
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