If I File for bankruptcy, Will it Stop Foreclosure?
If you owe money and you feel like a foreclosure may happen soon, it’s certainly a sticky situation to be in if you have no easy way to pay off your debt soon enough. However, you might recall the general definition of bankruptcy, which is the protection of property and assets while you afford yourself time to sort out how creditors can get compensated.
You may be wondering if you can file for bankruptcy to keep your home and stop foreclosure from happening. Fortunately, bankruptcy can affect the state of your home, and depending on the circumstances, you may end up keeping it while being in a better position to pay your creditors as normal.
Here are the basics of bankruptcy to prevent foreclosure, courtesy of your Brooklyn Bankruptcy lawyers.
How Bankruptcy Affects Foreclosures
When bankruptcy begins, you have a period of time to either liquidate or reorganize your property so that you can be in a better position to pay what you owe your creditor. You can also readjust your debts and payment plan as a way to help you make payments and pay off debts in full.
Once the bankruptcy process is complete, the debtor is granted a “fresh start”, either with having their debt paid off entirely or being on track to pay the creditor as normal, and in many cases, according to the most knowledgeable bankruptcy lawyer Brooklyn is home to, this can be done without surrendering your house.
What Is Automatic Stay? Will it Get the Calls to Stop?
You might feel worried or terrified every time the phone rings, as it could be the creditor asking whether or not you have a payment. And naturally, debtors are too scared to tell them when they don’t.
Thankfully, such calls are prevented by a provision in the bankruptcy system known as the “automatic stay”. With automatic stay, an injunction occurs that makes it illegal for creditors to contact you for the money you owe them. As you work to create a plan for your bankruptcy, your creditors won’t be allowed to call you, email you, or send you letters about paying them back, and they will be notified later on about their role in the bankruptcy process. When filing for bankruptcy, you’re not required to make any payments to your creditor until its conclusion.
What Should I Do to Start the Bankruptcy Process?
In order to file for bankruptcy to prevent foreclosure, a bankruptcy petition must first be completed and submitted to bankruptcy court. Other requirements include documentation of your finances, assets, and payment history. With these credentials, the judge will determine the best course of action so both you and your creditor get a fair shake regarding your debt.
According to bankruptcy attorneys in Brooklyn NY, you’ll need to file for Chapter 13 bankruptcy. This bankruptcy refers to the configuration of debts from a person paying a home mortgage. As you file this bankruptcy, there will be an exemption list that you can place your home in, and this can keep it from being repossessed by your creditor if you cannot pay off your debt.
It’s strongly recommended you hire a Brooklyn bankruptcy lawyer to help represent you in court and smooth out many rough areas in the bankruptcy process. Filing for Chapter 13 can allow you to afford the best bankruptcy attorney Brooklyn can provide if you include attorney compensation in your bankruptcy plan.
For the best bankruptcy attorneys Brooklyn has to offer, contact Ursulova Law Offices at (718) 336-7000. We will give you a detailed plan and a peace of mind to ensure you’ll escape your debt and keep your home.