Will a Bankruptcy Petition Let Me Save My House?
Filing bankruptcy comes with serious costs, but it also provides meaningful benefits. Of those benefits, one of the most important is a provision of the Bankruptcy Code known as the automatic stay. This important part of bankruptcy law stops all other legal actions dead in their tracks. For debtors facing obnoxious and aggressive debt collectors, the automatic stay can be a much needed and appreciated ally.
Located at section 362 of the Code, the automatic stay provision prevents creditors from pursuing a variety of legal actions related to your rights. For instance, creditors cannot ask a court to enforce a pre-petition judgment, acquire possession in your collateral, perfect a lien against your collateral, or recover a claim against your estate.
In the case of a home, the Bankruptcy Code’s automatic stay can prevent or at least delay debt collectors from seizing your home and throwing out you and your children. While relief under Chapter 7 may be limited, a Chapter 13 bankruptcy will give you between three and five years to recover your missed payments. With your unsecured debts reduced as a result of bankruptcy, it may be considerably easier to make your house payments in the future, even with the added repayment figure.
Ready to find out how a bankruptcy filing may suspend your family’s financial free fall? The attorneys at the Dallas law firm of Fears Nachawati know what it takes to protect you and your family from debt collection efforts and to put your personal balance sheet on a solid footing. Talk to our professionals today for your free consultation.