The proceedings of foreclosures in Pensacola FL are usually initiated by homeowners who have fallen behind in their mortgage payments. A homeowner may default on multiple mortgage payments, which can lead to foreclosure proceedings. The mortgage holder will then start legal proceedings to sell the house at an auction. Notifying the homeowner is required by the lender. The foreclosure process can be lengthy and may require alternative measures such as renegotiating the loan, organizing short sales or drafting a deed in lieu. Filing bankruptcy in Pensacola Florida can be used to delay foreclosure or save the debtor’s house.
How Chapter 13 Bankruptcy Effects Pensacola FL Foreclosures
Exemptions won’t protect your home against being liquidated to pay creditors under Chapter 7 bankruptcy. If you wish to delay the sale and negotiate with the lender you can file for bankruptcy. A Chapter 7 bankruptcy can also wipe out any secured debt, including those resulting from junior mortgages and home equity loans. If you don’t want to lose certain property, such as your home, filing for Chapter 7 bankruptcy is not the best option.
Chapter 13 offers homeowners more options and is the best option for those who wish to keep their homes. Chapter 13 bankruptcy allows you to pay off late payments over the term of your repayment plan as long as you still make your mortgage payments. You can avoid foreclosure if you pay your Chapter 13 debts on time.
Multiple mortgages can sometimes lead to homeowners being late with their mortgage payments. Some homeowners find that their house’s value has fallen since the last economic crisis. Their second and third mortgages may not be fully secured by their home’s value. To save your home, lien stripping can be used if there isn’t enough equity to secure any of the junior mortgages. You can ask the Chapter 13 bankruptcy judge to remove any junior mortgages that aren’t secured and re-categorize them as unsecured debt. Unsecured debts, which are lower priority debts in bankruptcy, may not be fully or at all.
Bankruptcy Stops Foreclosure
Are creditors trying to seize your property or money? Bruner Wright P.A. can help you stop harassing collectors, lawsuits, or garnishment. The automatic stay will be immediately put into effect by filing bankruptcy.
The automatic stay is a provision in the U.S. Bankruptcy code under 11 U.S.C. The automatic stay is a provision in U.S. Bankruptcy Code under 11 U.S.C. Any sale of foreclosures in Pensacola FL that occurs after bankruptcy filings are filed is null.
The Automatic Stay
Once your bankruptcy case has been filed, the automatic stay immediately stops any legal action and collection. Your creditors are legally prohibited from pursuing you and all further actions would be illegal. The Chapter 13 bankruptcy allows you to reorganize your finances and quickly discharge your debts. After your bankruptcy has been completed, you can file a discharge. You get a new start and your creditors are permanently barred from suing you.
One of the most frustrating aspects of falling behind when you have a creditor is being contacted by collectors. Collectors are trained to berate and harass you to get as much money as possible. Collectors know that if a person is behind, there might be limited resources. Collectors will do everything necessary to help you get those resources, even if it means that you can’t afford food, shelter, or other essentials.
Bankruptcy ends all collector contact (such as letters or collection calls) and completely stops any actions by collectors to seize your property or money. The Bankruptcy Court will issue an official letter to collectors confirming your bankruptcy filing. They must cease contacting you if they violate the automatic stay.
A bankruptcy filing will stop a creditor from filing a lawsuit against your property. An automatic stay prohibits creditors from pursuing a lawsuit against you and renders any judgment after your bankruptcy filing null.
The Process Of Foreclosures In Pensacola FL
You can use the automatic stay to postpone or stop foreclosure proceedings on your property.
If the mortgage company is pursuing foreclosure, they must give you notice. Once you are notified of foreclosure, you will have the chance to pay past due amounts, attend a hearing and protect your rights.
If you are unable to find an alternative through the process of foreclosures in Pensacola FL, bankruptcy is the best option to stop foreclosure defense. You need to remember that your home, even if it is in foreclosure or behind on your mortgage payments, is yours and not the mortgage company. This holds true until the property is sold at the foreclosure sale.
A creditor with a secured interest on your vehicle who wants to take it back cannot do so after bankruptcy is filed. Any attempt to foreclose on your house by a creditor must be stopped immediately.
You have options when you file for bankruptcy. Bankruptcy allows you to keep your car and home while you negotiate or modify the agreement with the creditor. You can also surrender them at a future date so that you may replace or move your vehicle before repossession or foreclosure occurs.
You may also be eligible for bankruptcy laws like:
- Redemption allows you to get rid of your car loan and finance the vehicle at its current value with a lower monthly payment.
- Cramming allows you to keep your vehicle after bankruptcy is over and pay only the current value.
- Lien stripping allows you to get rid of a higher or second mortgage on your house.
Differential Between Chapter 7 And Chapter 13 Bankruptcy And Foreclosure
The type of bankruptcy filed will decide whether the foreclosure will be delayed or whether you will use bankruptcy to repay arrearages while keeping your home.
Chapter 7 bankruptcy can stop foreclosure on your house. However, Chapter 7 bankruptcy doesn’t have a plan for reorganization so Chapter 7 is only temporary. The mortgage company can begin foreclosure proceedings where they left off if the mortgage company asks for the automatic stay to be lifted or the bankruptcy case to be discharged.
This does not mean that a Chapter 7 bankruptcy cannot save your home. You may be able to pay your mortgage if you get rid of high-interest debts like credit cards and auto loans. To save your home, you should discuss your options with your lender to modify your mortgage after you file Chapter 7.
Alternatively, you can file Chapter 13 bankruptcy foreclosure in Pensacola and not have to sign a separate agreement to the mortgage company in order to keep your home. You can stop the foreclosure by filing bankruptcy. It will allow you to reorganize your debt and begin regular payments after your case is filed. This will also give you the opportunity to catch up on arrearages that have been accrued over 3-5 years.
You can also file Chapter 13 bankruptcy in Florida to remove any second or higher mortgages or liens on your home, provided that the property’s value is equal to or lower than the amount you owe for the first mortgage. This is what bankruptcy attorneys call lien stripping. This can help you save thousands and allow you to keep your home.
Contact Bruner Wright P.A.
Bruner Wright P.A. is a top-rated experienced law firm servicing the Florida Panhandle and the South Georgia area. Our practice has been very successful in helping people discharge their debts and handle both bankruptcy and foreclosure. We offer a personal service that is comprehensive and thorough in all aspects of our industry. We are responsive to the needs of our clients.
Our Service Areas
- Tallahassee Fl
- Douglas Ga
- Brunswick Ga
- Augusta Ga
- South Georgia
- The Florida Panhandle
Contact us today to schedule a consultation to speak to a bankruptcy attorney about bankruptcy and foreclosure. A member of our team will review your case to help you make the right choice. We are focused on personal chapter 7 bankruptcy, chapter 13 bankruptcy foreclosure, and business bankruptcy chapter 11. We want you to achieve financial stability.