Protecting Homeowners During Foreclosure Proceedings
If you are facing serious financial challenges, the attorneys at Janvier Law Firm, PLLC, understand that the last thing you want to be worrying about is losing your home. Our understanding legal team takes the time to learn about your situation so that we can provide you advice tailored to advance your needs.
With more than 30 years of bankruptcy experience in North Carolina, we know what it takes to protect your home and help you move beyond the financial challenges you are facing.
Bankruptcy Can Stop Foreclosure Proceedings
If you are facing the threat of foreclosure, declaring bankruptcy can help you avoid foreclosure on your home. Filing bankruptcy usually puts an automatic stay on foreclosure proceedings. This automatic stay requires creditors to stop all collection attempts until your bankruptcy is finalized. This can give you valuable time to begin restoring your financial circumstances while allowing you to stay in your home.
Worried about creditor harassment? Filing bankruptcy also helps you put a stop to creditor harassment by not just putting an automatic stay on collections but it also puts a lawyer in your corner who can speak up on your behalf .
Will I Be Able To Keep My Home?
People frequently file bankruptcy to keep their homes. Assuming you are current and can remain current on mortgage payments, you keep your home unless the equity in the home exceeds the exemption. (See Overview of Bankruptcy for details on exemptions). If you are behind in payments, then you risk losing your home to foreclosure. Chapter 13 bankruptcy allows you to propose a plan by which your resume making the payments and catch up the back payments over a period that can be as long as 60 months. Additionally, the bankruptcy courts in North Carolina are putting in place programs encouraging debts and mortgage companies to modify mortgages in appropriate cases.
The purpose of bankruptcy is to get rid of debt by selling off property to pay off creditors, not to leave you completely impoverished, which is why you are allowed exemptions.
If you file Chapter 7 and have built significant equity in your home, there is a chance you may lose your home. If you are considering bankruptcy and are worried about losing your home, filing Chapter 13 bankruptcy may be the better option for you as this form of bankruptcy has a higher exemption rate than Chapter 7 does.
Does Foreclosure Eliminate The Loans On My Home?
No. The proceeds from the foreclosure sale are first applied to the costs of the foreclosure, and then applied to the payment of the mortgage. If the proceeds are not sufficient to pay the loan, you may still be liable for the balance, which is called a deficiency. The mortgage company can sue you to collect the deficiency.
Know You Rights And Options. See How We Can Help.
It’s important to know that most lenders don’t want you to foreclose on your home because then the bank is stuck with a home they have to sell, which doesn’t always work in their favor. This means that lenders are oftentimes more willing to work with debtors on coming up with a solution that meets both party’s interests, through loss mitigation and modification programs.
Working with a lawyer who will take the time to understand your needs and your objectives is always the best course of action, especially if you don’t understand your rights or which options are in your best interests.
Our attorneys are committed to providing you with an in-depth analysis of your situation. We will outline the options you have available and help you determine the best course of action that reflects your goals.
Discuss Your Legal Options
The sooner you act, the more likely you are to successfully put a stop to foreclosure proceedings. Take the next step toward protecting your home and your future by speaking with us during an initial consultation in our Raleigh office.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.