Greensboro bankruptcy may be the foreclosure solution you need
Image via Nik Shuliahin on Unsplash
Home is all-important to Greensboro consumers. It means security, peace of mind, and shelter for your family. When all that is threatened because you fell behind on your mortgage payments, you may be in a panic, looking for a solution. Chapter 7 Greensboro bankruptcy can stop foreclosure and buy you valuable time to make decisions about your family’s future and housing needs. Here’s a look at how Chapter 7 can help you stop foreclosure – but you must act fast if your home was threatened.
1 – Chapter 7 Can Stop Foreclosure in Its Tracks
If you’ve received notice of a future foreclosure sale of your home, filing Greensboro bankruptcy can stop that sale. When you file Chapter 7, unless you have filed another recent bankruptcy, you get what’s called the “automatic stay” on debt collection. Stay, in the legal sense, means stop. That means the planned foreclosure auction must be scrapped and cannot be restarted for 90 days which is the duration of the automatic stay. Three months can be life-changing when your home is on the line.
2 – Chapter 7 Also Stops Actions by Lienholder
It’s not just your mortgage lender that can threaten foreclosure. If you have a homeowner’s association (HOA), and have unpaid fines or dues, the HOA can try and foreclose on your home to force a sale, so they can hopefully collect some of the proceeds. In some cases, the county might try and foreclose if you have years of unpaid property taxes. If you’ve been sued and creditors got a judgment lien on your home, they can also try and foreclose. Chapter 7 can stop all these actions and wipe out debts.
3 – Chapter 7 Can Block New Liens from Attaching to Your Home
If you’re currently in a lawsuit over debt or a creditor has won a lawsuit and is trying to secure a lien against your home, filing Chapter 7 bankruptcy can stop that process. This 90-day window of protection shuts down any pending lawsuits. Then, if the debt can be discharged with your Wilmington bankruptcy case, that gets rid of the threat of that lawsuit and lien for good. If you can use bankruptcy to wipe out older tax debts, credit cards, and medical bills, that can put certain liens and lawsuit risks to rest.
4 – Chapter 7 Can Buy Time to Sell Your Home and Move
In some instances, even with Greensboro bankruptcy, you can’t afford to keep your home. But because of the 90-day stay on collections, including foreclosure, you might have time to sell your home or surrender it to the lender after using the three-month respite to save up money to move and get a rental property. If you can’t afford your mortgage payments, it’s best to recognize you’re better served by letting the property go and moving on to a better housing situation.
5 – Chapter 7 Gets You Out of Debt and Ready for Your Next Home
Getting a foreclosure notice is stressful, and you might think it’s the end of your security of owning a home. However, bankruptcy gives you a fresh financial start, wipes out lots of debt, and gets you ready for a better situation in the future. After a bankruptcy discharge, you can purchase a home within two or three years after you rebuild your credit. This gives you time to figure out how much you can afford in your next mortgage, save up money, and develop a better housing strategy.
Getting a foreclosure notice can feel like the end of the world. It’s stressful and scary, and you might even experience a moment of panic because you’re not sure what to do next. Filing bankruptcy may be the best solution for your circumstances and to take control of your foreclosure. To find out more about how Chapter 7 bankruptcy can help with foreclosure, contact the Law Offices of John T. Orcutt. Call 1-888-234-4181 today for a free Greensboro bankruptcy consultation at one of our convenient locations in Raleigh, Durham, Fayetteville, Wilson, Greensboro, Garner or Wilmington. Read reviews from satisfied clients and then call us for help with your fresh financial start.