Tulsa Foreclosure and Bankruptcy Attorneys

Foreclosure and Bankruptcy Attorneys

When you file for chapter 7 and chapter 13 bankruptcy, you can keep your home as long as you are current on your mortgage payments. People who lose their home after declaring bankruptcy are usually under water and seek to have the mortgage debt discharged, or they have equity in the home which is used by the trustee to pay unsecured creditors (debtors can save their home under special homestead exemptions). Under most circumstance, filing for bankruptcy will temporarily postpone the foreclosure process. Read on to learn more about how declaring bankruptcy may help save your home.

Foreclosure and Bankruptcy Under Chapter 7 Bankruptcy

When you file for chapter 7 bankruptcy, an automatic stay will be enacted to prevent any of your creditors from collecting pre-existing debts. This includes any mortgage arrears you may owe.

Filing for chapter 7 bankruptcy will delay the foreclosure process for a short period of time. During this time, a mortgage lender can file a motion with the bankruptcy court requesting for the automatic stay to be lifted so that the mortgage lender can proceed with the foreclosure. If you do not pay the arrears owed to the mortgage lender within due time, the foreclosure process will continue.

As mentioned above, you may be able to save your home from being foreclosed on upon filing your chapter 7 petition; however, this does not protect you from the foreclosure process which occurs outside the bankruptcy court. Declaring bankruptcy will provide you with more time to pay any mortgage arrears owed if you wish to keep your home. You may also be able to keep your home by using a homestead exemption.

You must continue making monthly mortgage payments to your lender. If you fall behind on making your mortgage payments, you will lose your home through the foreclosure process.

Foreclosure and Bankruptcy Under Chapter 13 Bankruptcy

Unlike a Chapter 7 bankruptcy, filing a Chapter 13 bankruptcy may help you save your home. If you are current on your mortgage payment, you can keep your home.  If you are behind on your mortgage payment, or undergoing foreclosure, you may be able to keep your home as a result of the chapter 13 repayment plan. The chapter 13 bankruptcy repayment plan will allow you to pay on your mortgage arrears throughout the term of the payment plan (this usually last 3-5 years). You must continue to make timely mortgage payments from the date your Chapter 13 petition is filed.

If you do not wish to keep your home and stop making mortgage payments all together, then the lender will eventually file a motion for relief from the automatic stay to continue the foreclosure process.

 

Foreclosure and Bankruptcy Process

Proceeding Timeline	Action	Homeowner Options
Start of Foreclosure Proceeding	Notice of Default	Homeowner can retain property by paying any debt(s) owed to lender within a specified time period from receiving the Notice of Default.
3 Months After Notice of Default	Notice of Trustee Sale is Recorded	Homeowner can retain property by paying any debts owed to lender up until a specified period before the foreclosure sale.
Foreclosure Sale Date	Sale of Property	The property is sold to the highest bidder, or the property reverts to the foreclosing beneficiary.

 

Contact a Tulsa Bankruptcy Attorney About Foreclose and Bankruptcy

If you are considering filing for bankruptcy, contact our debt relief attorneys in Tulsa to discuss how you can keep your home upon filing your petition. Several bankrupt consumers keep their home and successfully pay off their mortgage after declaring bankruptcy. Contact us to find out about bankruptcy and foreclosure and how you can stay in your home and have your debts completely discharged.

 

Tulsa Foreclosure and Bankruptcy Attorneys

http://tulsabankruptcylawyers.net/tulsa-foreclosure-and-bankruptcy-attorneys/