Hiring a Bankruptcy Attorney to Delay Foreclosure

When you are facing a mortgage foreclosure, filing for bankruptcy is one option that may delay or even stop foreclosure proceedings altogether. Although hiring a bankruptcy attorney in the context of a mortgage foreclosure will not be successful in every situation, you may be able to achieve at least some short-term relief in terms of your housing situation.

The Automatic Stay in Bankruptcy Proceedings

Whenever you file either a Chapter 7 or a Chapter 13 bankruptcy case, the U.S. Bankruptcy Court issues an order that is commonly known as the "automatic stay". The automatic stay requires creditors, including your mortgage lender, to stop all collection activities and lawsuits against you until the court orders otherwise. This means that your mortgage foreclosure proceedings must stop on at least a temporary basis, even if your home is already scheduled to be sold at a foreclosure sale. The automatic stay, however, is only a temporary solution that may delay a foreclosure sale for three to four months at most. In many circumstances, the court will permit the mortgage lender to proceed with the foreclosure after a month or two by lifting the automatic stay.

Chapter 13 Bankruptcy and Foreclosure

If you wish to remain in your home, and you do not have a way to become current in your mortgage payments, you may be able to do so by filing for Chapter 13 bankruptcy proceedings. In a Chapter 13 case, you enter into an extended repayment plan of up to five years to pay off some or all of your debts. If you have enough income to make your current mortgage payments, as well as make payments toward the past-due mortgage payments, then Chapter 13 bankruptcy proceedings may enable you to stay in your home.

Contact a Lawyer for Advice

If you are in danger of losing your home to a mortgage foreclosure, you should immediately get in contact an experienced bankruptcy attorney to assist you. A bankruptcy attorney can explore all of your options with you, and help you make the best decision for your decision.