 |
 |
 |
 |
The information on this website is for general information purposes only. Nothing on this or associated Pages, Documents, answers or other communications should be taken as legal advise for any individual or situation. The information on this website is not intended , to create and receipt or viewing this information does not constitute, an attorney-client relationship.
The services or benefits provided are with respect to bankruptcy relief under Title 11 of the U.S. Bankruptcy Code. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Copyright 2011 by Mark A. Spence, P.A. Florida Personal Injury/ Bankruptcy Attorney
The services or benefits provided are with respect to bankruptcy relief under Title 11 of the U.S. Bankruptcy Code. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Copyright 2011 by Mark A. Spence, P.A. Florida Personal Injury/ Bankruptcy Attorney
Can a foreclosure against my homestead be stopped by filing a bankruptcy?
When you file a bankruptcy, an injunction is entered in your favor which is known as an automatic stay. The automatic stay stops all collection activities against you including lawsuits and foreclosure actions. Usually, in a Chapter 7 bankruptcy, the automatic stay will only temporarily stop the foreclosure action against your homestead property. The mortgage holder may file a motion for relief from the automatic stay and request that the Court enter an order allowing it to complete the foreclosure action against your homestead property. Usually, in a Chapter 7 bankruptcy, if you are surrendering the house to the mortgage holder, the court will enter an order granting the motion for relief from the automatic stay, but limiting the mortgage holder's rights to the foreclosure of the property. The mortgage holder's right to pursue you for what is known as a deficiency judgment after the foreclosure is essentially forfeited upon the entry of a bankruptcy Discharge.
In a Chapter 13 bankruptcy, the Chapter 13 plan may provide that you cure the arrearages owed on the mortgage on your homestead property during the life of the Chapter 13 plan. This would prevent a foreclosure action from proceeding against your homestead property. In addition to making the monthly payment under the Chapter 13 plan, which would include the curing of the arrearages on the mortgage, you would be required to make all regular contractual payments due under the mortgage which arise after the date of filing the Chapter 13 bankruptcy. You would also be required to maintain insurance on the property and pay all property taxes that accrue after the bankruptcy is filed. In addition to curing your first mortgage in your Chapter 13 case, you may be able to strip second mortgages or other subordinate liens against your homestead property-known as lien stripping-through the Chapter 13 plan.
When you file a bankruptcy, an injunction is entered in your favor which is known as an automatic stay. The automatic stay stops all collection activities against you including lawsuits and foreclosure actions. Usually, in a Chapter 7 bankruptcy, the automatic stay will only temporarily stop the foreclosure action against your homestead property. The mortgage holder may file a motion for relief from the automatic stay and request that the Court enter an order allowing it to complete the foreclosure action against your homestead property. Usually, in a Chapter 7 bankruptcy, if you are surrendering the house to the mortgage holder, the court will enter an order granting the motion for relief from the automatic stay, but limiting the mortgage holder's rights to the foreclosure of the property. The mortgage holder's right to pursue you for what is known as a deficiency judgment after the foreclosure is essentially forfeited upon the entry of a bankruptcy Discharge.
In a Chapter 13 bankruptcy, the Chapter 13 plan may provide that you cure the arrearages owed on the mortgage on your homestead property during the life of the Chapter 13 plan. This would prevent a foreclosure action from proceeding against your homestead property. In addition to making the monthly payment under the Chapter 13 plan, which would include the curing of the arrearages on the mortgage, you would be required to make all regular contractual payments due under the mortgage which arise after the date of filing the Chapter 13 bankruptcy. You would also be required to maintain insurance on the property and pay all property taxes that accrue after the bankruptcy is filed. In addition to curing your first mortgage in your Chapter 13 case, you may be able to strip second mortgages or other subordinate liens against your homestead property-known as lien stripping-through the Chapter 13 plan.
Mark A. Spence, P.A.
Attorney At Law
6400 Madison Street
New Port Richey, FL 34653
727-846-1777
Bankruptcy
Personal Injury
Attorney At Law
6400 Madison Street
New Port Richey, FL 34653
727-846-1777
Bankruptcy
Personal Injury