Bankruptcy Assistance from A Bankruptcy Lawyer
Bankruptcy via Chapter 13
The most common method employed by dallas foreclosure lawyers on behalf of their clients to combat foreclosure is when a homeowner makes use of a chapter 13 bankruptcy repayment plan. In so doing, they are exercising their rights under federal law to stop all collection activities, all lawsuits, and included in this group—also stopping foreclosure.
Bankruptcy Via Chapter 7
Chapter 7, while uncommon for dealing with foreclosure, can still be a method of dealing with foreclosure. In some cases, filing chapter 7 bankruptcy is used to simply buy more time but not necessarily to keep you in the home long term. If a homeowner files ch 7 just prior to the home being sold at foreclosure auction, the foreclosure is stopped immediately. Foreclosure proceedings do not proceed to completion because the automatic stay issued from the bankruptcy court orders all these activities to stop until the lenders attorneys have the time or the sense to file a motion to lift stay.
In Most Cases the Automatic Stay Remains in Place Through the Entire Chapter 7 Bankruptcy
While it is common for a chapter 7 bankruptcy to have an automatic stay run the entire course of the bankruptcy in a 3-4 month period, it is important to realize that the banks have the right to file a motion to lift stay of foreclosure. In so doing, they are required to bring valid deed of trust or proof and chain of custody regarding the title and ownership of the mortgage.
But Why Do I Hear So Much About Chapter 11 Bankruptcy?
Filing chapter 11 bankruptcy is common because it is constantly splashed across the news as companies file to reorganize their financial affairs through bankruptcy restructuring. As a result, many people approach a bankruptcy attorney with the request that they be assisted in filing a chapter 11 bankruptcy.