Bankruptcy and Foreclosure Litigation
- March 14, 2014
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For many Americans owning their own home is the fulfillment of the American dream and facing foreclosure litigation may represent one of life’s worse nightmares. In a situation where a debtor is facing foreclosure and does not have any money or other means to pay back their debts, bankruptcy may offer a way out. Most people may avoid filing for bankruptcy at all costs because they do not want to experience the negativity associated with filing or the unwanted impact on their credit, but in truth bankruptcy may provide them with the financial relief that they are so desperately seeking. Once one files for bankruptcy they get the immediate benefit of the statutory automatic stay and may assist in avoiding foreclosure litigation for at least a duration of time that will allow the debtor to explore various options to keep their property. The automatic stay immediately prevents all creditors from pursuing lawsuits against a debtor and from persistently attempting to get the debtor to repay their debts. This includes foreclosure litigation and the immediate threat of losing access to one’s home. In this situation, Chapter 7 bankruptcy may only offer limited assistance. The creditor seeking foreclosure on a debtor’s home may continue the lawsuit once the bankruptcy is over, but filing Chapter 7 may, at the very least, provide the debtor with additional time to explore financial option to begin paying back the debt. Chapter 13 bankruptcy can provide a debtor with total relief from the threat of foreclosure. If a debtor is generating a certain income in the face of a financial crisis the bankruptcy court will establish a repayment plan where the debtor makes affordable monthly payments for up to five years and is able to maintain possession of all of their assets and property. The best part of this option is that the debtor will not be faced with the threat of creditor lawsuits or foreclosure throughout the entire process. If you are having trouble dealing with your consumer debt issues and fear that you may become involved with foreclosure proceedings that may result in the loss of your home it is critical that you seek the advice of experienced legal counsel to advise you on these issues. For more information regarding foreclosure litigation, Chapter 13 bankruptcy, Chapter 7 bankruptcy, or any other consumer debt issues visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and not intended to replace the advice of an attorney.