Bankruptcy Will Stop Foreclosure and Sheriff Sale

If you have received a notice that your mortgage lender is initiating foreclosure proceedings, you will likely do anything to put the brakes on that process. Avoiding foreclosure is a major reason that people come to us to talk about filing bankruptcy. They are looking for a solution to save their house. Based on your situation, bankruptcy may help you avoid foreclosure. In order to get the best outcome, it is important to understand what protections are available against foreclosure.

How Do I Stop the Sheriff Sale on My Home?

If your home is scheduled for sheriff sale, it is important to take action immediately.  If nothing is done before the sheriff sale date, your home will be lost and chances are you will be stuck with a bill that you will never be able to pay off.  The bill you could get stuck with is called a mortgage deficiency judgment.  Chances are you have probably tried to work with the mortgage company, but they were unwilling to work with you.  Calls to banks often go unreturned and loan modifications are often denied.  Filing bankruptcy may be the best option for you.  Filing bankruptcy will stop the foreclosure and will take your home off of the sheriff sale listing.

How Can Chapter 7 Bankruptcy Help With Foreclosure?

Chapter 7 bankruptcy typically offers a full discharge of your outstanding debts without need for repayment. When you file for Chapter 7, you fall under the “automatic stay” provision, which mandates that all creditors stop collection actions until your case is discharged (complete). This automatic stay can delay a foreclosure, but may not allow you to completely avoid it. Filing Chapter 7 bankruptcy would be a good idea if keeping the house is not an option you would like to explore.  You may owe more than what your house is worth or perhaps the home has problems that you cannot afford to fix.  Filing Chapter 7 bankruptcy would also be a good idea if you are current in your mortgage payments and you would like to discharge other debts such as credit cards, personal loans, medical bills, and items sent to third-party collections.

How Can Chapter 13 Bankruptcy Help With Foreclosure?

The other kind of bankruptcy is Chapter 13, which requires repayment of some portion of your outstanding debt. Chapter 13 can be a good choice for avoiding foreclosure. The process for Chapter 13 requires establishment of a payment plan with your creditors. In other words, you’re working with your creditors to find a more workable solution. Filing a Chapter 13 bankruptcy would be ideal if you are behind in your mortgage payments and you would like to keep your home.  Filing a Chapter 13 bankruptcy will cure the arrearages and can help you get current on your mortgage payments.  Filing a Chapter 13 bankruptcy will stop the foreclosure and will take your home off of the sheriff sale listing.

Filing Chapter 13 may also allow you to pay pennies on the dollar on your other debts such as credit cards, medical bills, personal loans, and items sent to third-party collections.  Chapter 13 is what most people envision of as a debt consolidation through the Federal government.

Experienced Bankruptcy Attorney Can Help You Avoid Foreclosure!

If you’re facing foreclosure, there’s no time to lose. An in-depth discussion with an attorney will allow you to make educated decisions about bankruptcy as a tactic to postpone or avoid losing your home. An experienced Columbus Ohio Bankruptcy Attorney will be able to assist you with crafting a plan to tailor a bankruptcy around the unique needs and rhythms of your family. A legal professional can determine your eligibility for filing bankruptcy and can help you explore other avenues if bankruptcy is not the best option for you. Legal counsel will ensure that your rights are protected and that someone is looking out for your best interest. The friendly Law Office of M. Sean Cydrus can help you craft a plan to rebuild your financial future. We understand the stress of financial worry. We use a personal approach to solving your financial challenges and are here to help you through this difficult time. We pride ourselves on the ability to provide our legal expertise with compassion and understanding. We can meet with you at our conveniently located offices in Columbus and Chillicothe. Call today for a free consultation. Help is one phone call away!