Handling Bankruptcy in Foreclosure
In some cases, bankruptcy can be used to help prevent foreclosure. In other cases, it cannot. If you are considering bankruptcy and fear that your home may be in danger of foreclosure, or if you need an attorney to help you process foreclosure and bankruptcy simultaneously, call James H. Monroe, P.A.
Attorney James H. Monroe in Orlando, Florida has more than 25 years of bankruptcy law experience. He is certified in bankruptcy law by the American Board of Certification. To schedule an appointment for a free initial consultation, call 407-872-7447 or contact our offices online today.
What if You Receive a Foreclosure Notice?
If you have received a foreclosure Summons Complaint notifying you that your house is in foreclosure, you may be able to stop it if you act quickly. Although you are not allowed to restructure the terms of your mortgage, you can ask the bank for leniency for time to catch up on your back payments, also known as “arrears.”
The bank would prefer not to foreclose on your house — especially in today's economy — but it needs a reason to believe you will make your mortgage payments. If all your other debts are discharged or consolidated through bankruptcy, then the bank has a reason to believe you will be able to make the payments.
Foreclosure in Chapter 7 Bankruptcy
In Chapter 7 bankruptcy, most of your unsecured debts are forgiven. But, a mortgage is a secured debt. While the underlying debt on a house or real property is discharged or forgiven the lien remains on the property and can still be foreclosed by the bank or lending institution. Foreclosure allows the bank or lending institution to take back title to the property. If the house or real property is surrendered in a chapter 7 bankruptcy all your remaining debt owed on the mortgage will be discharged even if the value of the house is less than the value of the debt.
Foreclosure in Chapter 13 Bankruptcy
If you are in foreclosure, filing for Chapter 13 bankruptcy may help you catch up on your arrears and reinstate your mortgage. Even if you have already been served a Summons Complaint, you can file for Chapter 13 bankruptcy to stop foreclosure at any time before the court auction to sell your house takes place.
In these times more than any other since the Great Depression, Americans are being turned out of their homes. Most foreclosures are the result of economic woes and predatory lending — not fiscal irresponsibility. If you are facing foreclosure and bankruptcy, we can help you through it.
Call 407-872-7447 or contact us online to schedule an appointment for a free initial consultation with attorney James H. Monroe.
