Foreclosure looms over your Brooklyn home (or Manhattan, Queens, etc. home). You’re not sure what to do about it and may be wondering if a bankruptcy filing will help.
Will bankruptcy stop foreclosure?
Of course, the answer depends on your situation. There are many different factors to that affect the decision, which an experienced New York bankruptcy attorney can help you sort through.
If you’re interested in preventing foreclosure, here are a few things you should know:
1. If you have insufficient funds to actually keep current on your mortgage payments, then filing for bankruptcy is likely the only option for preventing foreclosure. However, that doesn’t entirely answer the question. Because a bankruptcy filing can only help prevent foreclosure in certain situations.
2. Second Mortgage: If your primary concern is not keeping your home but rather dealing with liability from a second or third mortgage, then Chapter 7 may be an option for you. It won’t necessarily stop foreclosure, however it can change your second mortgage into unsecured debt, which can be wiped away in a Chapter 7 filing.
3. If your primary concern is in fact keeping your home, then another option is a Chapter 13 bankruptcy filing. You likely need to have some sort of adequate income for this to work. Because under Chapter 13, you (with the help of your lawyer) negotiate a re-payment plan that covers a 3 to 5 year period. And this can include your mortgage. If this is a path that can work for you, then Chapter 13 can be used to stop a foreclosure and enable you to continue living in your home.
With all of the above and other foreclosure situations in New York, it is of course important to work with an experienced New York foreclosure attorney who knows the ins and outs of both the foreclosure process and the bankruptcy process.
Will bankruptcy stop foreclosure in your situation? If you have any questions about foreclosure, please feel free to contact New York foreclosure lawyer Bruce Weiner, an experienced bankruptcy attorney in Brooklyn, for a free initial consultation.