Foreclosure Defense Attorneys in Lehigh Valley, Berks County & Lancaster County
How can bankruptcy halt foreclosure proceedings and keep me in my home?
The U.S. Bankruptcy Code was designed to help individuals resolve debt and protect their property. Our Pennsylvania legal team is trained in this field; they are ready to evaluate your financial situation and help determine your best plan of action.
The Bankruptcy Code has provisions designed to help protect your property. Upon your filing a bankruptcy petition, the court will issue an “automatic stay” that prohibits lenders from taking any collection measures, including foreclosure proceedings, until they are granted permission by the court or the terms of the bankruptcy plan have been determined.
How can bankruptcy prevent foreclosure: Chapter 7 versus Chapter 13
Filing bankruptcy will halt foreclosure proceedings no matter which chapter you file. But if your goal is to prevent foreclosure altogether, it is important to carefully consider which type of bankruptcy is best for your situation.
Chapter 7 will definitely delay foreclosure, but the outcome for your home will depend on your situation:
- If there is no feasible way for you to get current on delinquent mortgage payments, then you may end up losing your home despite bankruptcy.
- If you have a large amount of unsecured debt, which could potentially be discharged in bankruptcy, a Chapter 7 filing may free up enough funds in your monthly budget so that you are able to catch up on mortgage payments and continue making the payments in the future.
- By putting a temporary stay on the foreclosure, Chapter 7 could give you some time to make an arrangement with an alternative lender, especially if you have a lot of equity in your home.
On the other hand, if you are significantly in arrears on your mortgage and/or cannot, otherwise arrange to bring your mortgage payments current, then a Chapter 13 filing might be your best option for protecting your home from foreclosure. Chapter 13 allows you to pay off your mortgage arrears over the length of the payment plan. In order for the court to approve your payment plan, your income must be sufficient to maintain your mortgage payment, your normal day-to-day bills and the plan payment.
Contact our Pennsylvania attorneys today to defend your home from foreclosure
If you and your family are at risk of losing your home or think it’s time to consider bankruptcy as an option for debt relief, our lawyers are ready to help you take the next step. Contact our experienced eastern Pennsylvania bankruptcy law firm today to discuss your case. Our three offices are conveniently located in Lancaster, Malvern, and Wyomissing. Contact Case & DiGiamberardino P.C. by 610.372.9900 or online.