Foreclosure and Bankruptcy Lawyers in Las Vegas
Bankruptcy Stops Foreclosure the Day it is Filed
Foreclosure has become a very real and threatening part of life since COVID-19. You should be aware that Chapter 13 bankruptcy might be a viable option for you. Chapter 13 bankruptcy allows you to pay off the amount you are behind on your mortgage. You can do this whether the lender agrees or not. The bankruptcy court will force the lender to take payments and be reasonable. That is what the bankruptcy process is all about.
Chapter 13 Bankruptcy Stops Foreclosure
You do not have to try any other means of settling your debt. You do not have to beg for a loan modification or payment deferral. Your lender does not have to agree to a bankruptcy repayment plan. Even if you have not done anything other than get behind on your mortgage, Chapter 13 bankruptcy can be an invaluable tool.
When you file for Chapter 7 bankruptcy or for Chapter 13 bankruptcy, all of the creditors who have been hounding you and performing collection actions against you will be legally forced to stop. All financial proceedings against you, including foreclosure, will come to a halt. No bankruptcy can reverse a foreclosure that has already occurred, so you must act fast and begin bankruptcy proceedings before the actual foreclosure has occurred. Ideally, you will want to do this before any paperwork regarding the foreclosure has been filed or started. You should also be aware that, in some cases, certain proceedings may not be stopped, so you will need to check with your attorney to be sure no special circumstances apply to your situation.
Your attorney should also help you to understand the key differences between the different types of bankruptcy and which will be the most beneficial to you. Filing for Chapter 13 bankruptcy will enable you to pay off all of your debts and to keep your home, while filing for Chapter 7 bankruptcy is only a temporary fix. The foreclosure will still happen, eventually, but you will have more time to move from your home, to get rid of existing debts, and to find an alternate place to live. Though nobody wants to lose their home, sometimes Chapter 7 is the only option. Filing for Chapter 7 can give you the time to find a new home and to acquire a stable rental or residential history, which is important for improving your credit score. Be sure that you discuss your personal desires and financial goals with your Las Vegas foreclosure attorney and that he or she takes your wishes into consideration.
Foreclosure is a scary situation and one that homeowners should avoid getting themselves into at all costs. However, if you ever find yourself dealing with this issue, rest assured that you do have options. Aside from bankruptcy, you can opt to get a loan modification, loan forbearance, or various other types of assistance. Just be sure to do the work of finding out what your options are and exploring them thoroughly before rushing into a decision.
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