A home is among the most important thing that any person can ever possess or own. They stand at the center of our lives and serve as a source of shelter, security and identity
Regardless of whether you own or rent your home, this singular and profound status as a source of personal sanctuary renders the home tremendously important to all. For anyone who may be dealing with overwhelming or unmanageable debt, ensuring that your home is protected will therefore be at the forefront of your mind as you move forward in pursuing a solution for your debts.
For anyone who owns a home (subject to a mortgage) who is dealing with overwhelming or unmanageable debt, staying current on a mortgage may sometimes be challenging as obligations on other debts are simultaneously juggled alongside payments towards the mortgage. This can lead to mortgage arrears and eventually, to foreclosure on the home. For anyone who has encountered this situation, one of the first things that they will do in such a circumstance is explore options to address the arrears and stop the foreclosure. One avenue that people may consider is the possibility of filing bankruptcy, which naturally invites the question: Can bankruptcy stop foreclosure?
The answer is that – in certain circumstances – bankruptcy can prevent foreclosure. Beyond this, in virtually any bankruptcy the act of filing will typically at least delay the process of foreclosure (assuming that a sheriff’s sale has not already taken place) because the automatic stay will prevent a mortgage lender from going through with a sheriff’s sale while the stay remains in effect. It is critical to note, however, that the ability to prevent a foreclosure rather than delay it will hinge almost entirely upon the structure of your bankruptcy and the chapter that you choose to file under.
In certain bankruptcies filed under Chapter 13, a homeowner will have the opportunity to repay arrears on their home mortgage through their bankruptcy by making payments into the trustee that the trustee will in turn disburse to the mortgage lender. Thus, when the bankruptcy ends and the automatic stay is lifted, the arrears will have been cured and the foreclosure will not take place. Alternatively, if you choose to file Chapter 7, the filing may delay a foreclosure but it will not bring the mortgage current if there are missed payments prior to filing.
CALL NOW FOR A FREE STRATEGY SESSION FROM AN MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
Determining the best path forward with regard to mortgage arrears can be a stressful and anxiety inducing situation. Thankfully, our knowledgeable and experienced attorney are here to help and guide you as you navigate the process of addressing any mortgage arrears that might exist and protecting your home. So, when the time is right, or when you are ready, please don’t hesitate to reach out to Minnesota’s most kind and helpful bankruptcy law firm by going now to www.lifebacklaw.com.
