Foreclosure and Repossession
Will A Bankruptcy Provide a
Defense to Foreclosure?
One of the main reasons why people declare bankruptcy is to prevent their home from being repossessed. By the time it becomes necessary to even consider bankruptcy, it is very likely that you are behind on your mortgage. Banks and lenders will only wait so long before they begin taking drastic action to collect the debt you owe, such as foreclosing on your home because you can't pay for it. Fugate Law Firm can help you understand what your consumer rights are and how you can protect your home from being taken away through foreclosure.
Bankruptcy is one surefire way to stop foreclosure. The moment that a consumer files bankruptcy, all foreclosure proceedings must immediately stop - it's the law. This is known as an "automatic stay." Your creditors and lenders will no longer be able to take any actions to collect the debts that you owe because you will either be discharging those debts after liquidation through Chapter 7 bankruptcy, or after a 3- to 5-year repayment plan under Chapter 13. You may have heard some bankruptcy myths that make you hesitant to even consider filing, but after speaking with an attorney from our firm, you will understand how bankruptcy is a good thing and was designed to help consumers escape out from under crushing amounts of debt.
Will A Bankruptcy Stop A Repossession?
Yes. Not only will it stop the repossession, it may also lower your car payments, lower the amount you have to pay back and lower your interest rate. It is a great way to keep the vehicle you have and may make it more affordable. Even if your vehicle has already been repossessed, as long as the bankruptcy is filed prior to the car being sold at auction, a bankruptcy will get the vehicle back for you. It is important that you protect your vehicle immediately.