Bankruptcy stops foreclosure, and then….
By Cathy Moran, California Bankruptcy Attorney on Nov 18, 2007 in Uncategorized
The automatic stay in bankruptcy halts a foreclosure proceeding. But to provide meaningful relief, the homeowner has to have a plan for what happens next. The stay may be automatic, but it isn’t forever.
Bankruptcy can provide an opportunity to sell property and preserve some value for the homeowner. Chapter 13 can provide the opportunity to catch up on missed payments. It can also provide a forum in which to challenges mortgage servicing abuse or Truth in Lending violation.
If the homeowner has no equity and no hope of reinstating the mortgage, the only two other benefits bankruptcy might provide are time to move out, or in Chapter 7, the possibility of avoiding any tax consequences of the foreclosure.
An experienced bankruptcy lawyer can help you identify your options.
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