Where bankruptcy is concerned it helps to understand exactly what foreclosure is. A foreclosure begins when a homeowner is not able to make their monthly mortgage payments and they fall behind. The lender then starts a legal process to sell the home at an option so that they can get payment in consideration of the loan. The process itself involves many steps including notifying a homeowner. So in other words foreclosure does not happen overnight. In fact, lenders don’t usually begin foreclosure processes until several payments have been mixed. This can include up to three or four payments. Essentially this gives you a chance to turn to alternative measures such as a deed in lieu of foreclosure, a short sale or loan forbearance.
Buy Yourself Time with Bankruptcy Proceedings
If you have tried any of the above-mentioned measures and they have failed then it’s time to consider bankruptcy so that the foreclosure can be stalled. You need to speak with a foreclosure attorney in Valdosta to learn how to protect your rights. In most cases this can buy you time.
Bankruptcy Protection Can Delay a Foreclosure
When you want to delay or avoid the foreclosure of your home it’s time to seek bankruptcy protection. In some cases, bankruptcy may be able to help. If you file for Chapter 7 bankruptcy it can delay the foreclosure process for many months. This can give you the chance to save your home. There are also possibilities for saving your home if you file for Chapter 13 bankruptcy, as well. Regardless whether you file for Chapter 7 or Chapter 13 bankruptcy the courts will automatically issue an order for relief that includes an automatic stay. An automatic stay will direct your creditors to cease any collection activities immediately. If your home is scheduled for foreclosure sale, that sale will be postponed legally while your bankruptcy is still pending. This can typically give you up to 3 to 4 months of protection.