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Bankruptcy and Foreclosure

Bankruptcy and Foreclosure

If your bank has threatened you with foreclosure or has already begun the process of foreclosing on your home, bankruptcy could provide you with an opportunity to save your home. Upon filing your petition for bankruptcy, you will receive what the courts call an “automatic stay”. This means that creditors will not be able to contact you, attempt to collect any debt you owe them and will stop foreclosure efforts against your home. However, banks usually file a motion to lift the automatic stay and seek to proceed with the foreclosure, but it will take some time before a judge grants their motion. If you have multiple mortgages and are seeking to save your home, you should consider filing for Chapter 13 bankruptcy which could allow you to remove your second and third mortgages. This will occur if the value of your home is worth less than what you owe on your first mortgage. You will still be liable to the bank holding your first mortgage, but by stripping off your second and third mortgage, you could substantially reduce your monthly payments, leaving you with the extra cash necessary to save your home. If you are considering filing for bankruptcy you will be addressing many issues concerning foreclosure and should consult with an experienced bankruptcy attorney immediately in order to protect your rights. For more information regarding consumer debt, bankruptcy and foreclosure or other bankruptcy law 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. We are a Debt Relief Agency. We help people file for bankruptcy relief.

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