Some states provide that bankruptcy does not restart the clock for a lender’s requirement to provide a specific amount of time’s notice prior to foreclosure. For example, if a homeowner in California received notice on January 1st of default and potential looming foreclosure proceedings, and they waited until March 1st to file bankruptcy, 2 months would have already elapsed in California’s 3 month requirement of default notice prior to foreclosure. If the homeowner then does not properly move forward with their bankruptcy, the lender can actually file a motion to lift stay just one month later and the 3 month requirement has already been met, allowing them to schedule the foreclosure at a fairly short turnaround.
However, if you file and receive protection of the automatic stay through bankruptcy, and your bankruptcy goes forward correctly under the supervision of a bankruptcy attorney, then you will likely not have problems worrying about an automatic stay being lifted by the court.
How Chapter 13 Can Assist You To Keep Your Home
Many homeowners are willing to do anything possible to keep a home. If you’re in this situation and are willing to take measures to keep your home for your indefinite future, and you are currently late on a mortgage to the tune of 3-4 months ore longer, bankruptcy can be a powerful tool to get you back on track. If you currently have no other feasible possibility of getting current on your mortgage, then bankruptcy could literally be the only option available to you. By filing bankruptcy via chapter 13, you are afforded the chance to catch up your payments that are behind. The amount of money that you are behind on your mortgage is called “mortgage arrears” or “mortgage arrearages.” These arrears can be caught up over a 3-5 year period through the bankruptcy repayment plan. Reach out to an affordable and qualified dallas foreclosure lawyer to assist you in keeping your home.
How Chapter 13 bankruptcy works.
Chapter 13 lets homeowners pay this “arrearage” (once again, as mentioned previously, arrears refers to the total dollar amount which you, as the homeowner are late.) over the duration of the bankruptcy repayment plan which is proposed by you under the guidance of your stop-foreclosure-attorney. Typically the bankruptcy plan lasts for five years. In some situations, if the person filing is under the bankruptcy median income for a household of their size, they could be allowed the ability to run a shorter bankruptcy plan. Take the amount of money which you’re behind and divide it over 60 for the 60 months in a 5 year period. Then divide that amount by .90 for the 10% that the trustee takes in the plan. Then add attorney fees that are paid through the plan and you’ll have arrived at approximately what it will take for you to be able to catch up your mortgage.