The economic recession of 2008 took a major toll on innumerable people’s finances, and sadly, this led them to fall behind in mortgage payments. Once this occurs, the mortgage lender can begin the foreclosure process, but as many people have learned after speaking with Sacramento bankruptcy lawyers, a foreclosure isn’t necessarily a definite result. In reality, there are various ways that the right attorney can help once the bank decides to come after a person’s home.
Automatic Stay after Bankruptcy
The most obvious and beneficial way that bankruptcy lawyers in Sacramento can help during a foreclosure is by getting an automatic stay. This stay, which is granted by the court as soon as bankruptcy is filed, requires all creditors to cease their collection activities.
While this is a great way to end creditor harassment, the best part is that the mortgage lender will be unable to proceed with selling the home until the bankruptcy case is resolved in court. It should be noted that there are differences between Chapter 13 and Chapter 7 bankruptcy discharge. In most cases, Chapter 13 is more likely to save a home, but this is something that should be discussed with one’s bankruptcy attorney.
Fighting Attacks on Bankruptcy in Court
Filing bankruptcy can usually net a person several months in which to get their financial affairs in order and save their home. Sadly, a creditor can make a “motion to lift the stay” that was granted in the bankruptcy. If the courts grant this motion, the lender will be able to continue with the process of foreclosure.
Fortunately, Sacramento bankruptcy attorneys can help in this situation. A skilled legal representative will be able to argue against the motion to lift the stay much more successfully than the average layperson. Even if the courts do grant this motion, the right attorney can still postpone the home’s sale by two months, if not more.
Preparing for the Aftermath of Bankruptcy
Filing bankruptcy will not always save a person’s home, and in some instances, an individual may actually be ready to give up their residence in order to start living on a scale more in tune with their financial situation. An attorney can also help in this situation. The time that they buy their client with the automatic stay and fighting against any motions in court will allow the homeowner to prepare their finances to transition smoothly after moving out.
Additionally, the debts that are wiped out during bankruptcy filing, which often include second and third mortgages, will allow a person to save untold amounts of money. In the end, this will give them a better shot at making payments on their mortgage. Since a Chapter 13 payment plan can result in five years of additional time to pay off the mortgage, this additional funding can go a long way in keeping a person in their home.
Speak with a bankruptcy attorney today and find out how getting a fresh start is as easy as pressing the restart button! Call now 916-446-1791
916-446-1791