Stopping Foreclosure with Chapter 7 Bankruptcy
The automatic stay in Chapter 7 bankruptcy offers minimal protection from foreclosure. Court proceedings are postponed for a maximum of four months. With Chapter 7 cases, creditors have a fixed amount of time to object to the proposed discharge. If you wait after receiving the foreclosure notice, the sale can proceed quickly when the four-month stay expires. If you are current on your mortgage payments, you can usually keep your home while filing for Chapter 7 bankruptcy.
Stopping Foreclosure with Chapter 13 Bankruptcy
If you would like to keep your home, Chapter 13 bankruptcy gives you a chance to catch up on your obligations. Missed mortgage payments and other debts can be extended for the repayment term, which can be as long as five years. However, you must be able to cover your regular mortgage payments and other expenses during the process. If you have second and third mortgages with minimal remaining equity, it’s possible to restructure those debts while paying the arrears on your first mortgage. It’s more complex, but it can be done.
Preventing Foreclosure during Bankruptcy
Your lender can file a motion requesting that the court permit the foreclosure and subsequent sale. The good news is that Oklahoma uses a judicial foreclosure process. It takes more time and gives you a better opportunity to save your home. If you have already received a foreclosure notice, the document will tell you how long you have before the bank sells your home. Action must be taken quickly to stop the sale. Waiting will only make it easier for the bank to take your home.
If you are facing foreclosure and the possibility of losing your house, call me today at 405-216-0007. I offer free consultations. During the meeting, I will review your finances and see what it will take to help you keep your home.