The laws of the land with regard to foreclosure can be complex for you to understand. It is here you need the expert services of a good foreclosure lawyer to help you know your rights and manage foreclosure issues. A good lawyer will not only give you advice but help you in the documentation of your case as well.
Does filing for bankruptcy stop foreclosure?
Several homeowners believe that if they file for bankruptcy foreclosure will stop in the event of a sheriff’s sale. However, the reality is the process will only be delayed for a short while of time. This phase is called an automatic stay. This is the period where the creditors get the information that you have filed for bankruptcy. When the creditors are informed that you have filed for bankruptcy, they will stop pursuing you for the collection of payments. They are given details of the case, and they need to with immediate effect stop pursuing you for the collection of money.
Note that in the stay period, the creditor of the person may file a petition in court for lifting the stay. If the court of law agrees, the creditor can proceed and sell the home.
What about Chapter 13 Bankruptcy- are you eligible for it?
Experts in the field of law will give you an insight into Chapter 13 Bankruptcy, and you need to qualify for it. The law of the land says that you should be under the guidelines for Chapter 13. From April 2011, people are eligible to qualify for Chapter 13 Bankruptcy if their secured debt falls under a specific bracket. Esteemed name in the above field http://friscialaw.com says that secured debts are those debts that are secured by collaterals. For instance, home loans and automobile loans are good examples of secured debts. On the other hand, debts that are not secured by collateral are called unsecured debts, and a good example of them are credit card and student loans.
What does Chapter 13 Bankruptcy imply?
Chapter 13 Bankruptcy implies if you are eligible for the above, you can restructure your debt and repayment plan. This is a special kind of bankruptcy provision that is applicable to people that quality under it. It is also known as the wage earner’s bankrupt primarily because it offers the qualifying individual the benefits of a repayment plan.
This repayment plan generally takes place in a time-span of 3 to 5 years. The debts are repaid to the debtor in this time span, and the remaining debts at the termination of the duration are discharged.
In order to know your legal rights and understand them better, it is prudent for you to consult an experienced law firm in the related field. There are good legal firms that explain to you what your rights are in a free consultation that you need to schedule. So, consult these experts if you have any questions with regard to foreclosure and bankruptcy. Meet experts and get all your doubts cleared!