Avoiding A Foreclosure Sale With Bankruptcy
- March 14, 2013
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Bankruptcy offers an automatic stay which can assist a home owner in advance of a foreclosure and sheriff’s sale. The Chapter 13 filer and the Chapter 7 filer can both obtain foreclosure relief in this manner. The debtor must be aware of when a filing will help and should not wait until the sheriff’s sale to take advantage of this protection. When the debtor in US Bank National Association v. Rodriguez attempted to utilize bankruptcy after the fact to avoid a sheriff’s sale the judge ruled that the time for Defendant to act had long expired and debtor’s lack of action until the 11th hour would not be permitted to work and injustice against the bank. The debtor failed to enter the foreclosure action, in spite of proper notice from the bank, and a default judgment in foreclosure was entered in 2009. Only upon learning the sheriff’s sale was looming did the debtor act but the only action taken was to utilize all adjournments of the sheriff’s sale available by law and attempt to induce the bank to modify the loan. Finally, after the sheriff’s sale took place, the debtor filed bankruptcy in an effort to vacate the sheriff’s sale. An automatic stay will not permit you to stay in your home forever or strip the mortgage from a primary residence but it will give you the breathing room you need to review the different options available to you as a bankruptcy filer. If you are facing foreclosure you should consult with an experienced consumer debt protection attorney immediately in order to protect your rights. For more information regarding foreclosure, bankruptcy or other consumer debt matters in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for information purposes only and in no way is intended to replace the advice of an attorney regarding your specific matter. Our law firm is a debt relief agency and helps people file for bankruptcy relief.