Most people have heard that you can stop foreclosure by filing for bankruptcy, but is that really true? In most cases, the answer is yes. Declaring bankruptcy can bring foreclosure proceedings to a halt, end harassment from your creditors, and give you a way to reorganize your finances and catch up missed payments on your mortgage debt. At Gastin & Hill, Attorneys at Law, we have extensive experience helping Savannah and Coastal Empire homeowners save their homes through bankruptcy.
People who have borrowed money from a lender to buy a house, or used that house as collateral for a loan, may face foreclosure if they cannot pay back the money they owe. Georgia is a non-judicial foreclosure state: Once you fail to make payments on a loan on time, or default, the lender can start foreclosure proceedings without first filing a lawsuit. Under Georgia law, you must be given at least 30 days’ notice before the lender holds a sale of your property. After the lender has completed necessary filings with the county, it can hold a foreclosure sale at the local county courthouse. A lender can sue a borrower when a sale of the property does not cover the amount that is owed.
The first thing a bankruptcy filing accomplishes is to stop the foreclosure process. Once an automatic stay is in place, creditors are no longer allowed to collect on these debts or enforce liens. Foreclosures are prohibited by the automatic stay. The automatic stay applies in both Chapter 13 and Chapter 7 cases and is triggered as soon as you file for bankruptcy.
The amount that you are behind on your mortgage payments is included for payment through the Chapter 13 plan, giving you a fresh start with the mortgage lender, and enabling you to save your home from foreclosure.
In some cases, we can wipe out a second mortgage or equity line by including the debt in your Chapter 13 payment plan. This is a complicated legal maneuver, but one that greatly helps many debtors in bankruptcy. For that reason, you need the experience that we provide at Gastin & Hill.
If you are at risk of losing your home, you may feel there is nowhere to turn for help. But there are options available to you, including these:
A short sale of property occurs when the property is sold for less than the remaining amount of the mortgage. Short sales must be approved in advance by the lender.
The thought of losing your home or apartment is undoubtedly frightening, but you have options to avoid eviction or foreclosure. Gastin & Hill, Attorneys at Law provides debt relief consultation and services to clients in Chatham, Bryan and Effingham counties. Call us at 912-232-0203 or contact us online to schedule a free initial consultation.