Bankruptcy and foreclosure all you want to know

Often, at time, when a home-owner is forced to claim bankruptcy because of foreclosure, a home is the only asset that will be taken away, as it is the most valuable and comes at the highest monthly expense while other household do not have enough value to be sold. Automobiles are the next most valuable that tend to be lost in bankruptcy.

Home normally represents the highest monthly expense. There are ways that a home can be protected from being seized by creditors by working with the leading company who issued the mortgage. Filling for bankruptcy after a foreclosure notice has been issued will stop the foreclosure process on the home even if a sheriff sale has been scheduled. Bankruptcy is a constitutional right that has been defined by legislation to protect business and individuals which are unable to meet financial obligation.

Both Chapter 13 Bankruptcy and Chapter 7 Bankruptcy can protect assets such as home car while stopping creditors harassing you and from seizing your assets. This is why and you need the help of foreclosure defense lawyer that understands when and how to use a bankruptcy filing to your benefit. After notice of default-lis pendens has been field you can call a foreclosure lawyer long island, the lender has the right to request the full balance that is owed against the defaulted mortgage, and refuse to take monthly payment. This is referred to as accelerated debt, and should be avoided unless you happy to be in one if the opportunities that this can be used in your favor. Such as forcing bank to work with you in a HAMP/ HARP loan modification on your home that may be a New York foreclosure. Speak one of the Foreclosure Lawyer at the Law office Patel and Solitis to see may apply to your situation.

It is crucial to contact the lender and come to an agreement even after notice of default has been issued to the homeowner Loan Modification in New York is handled by the New York Attorneys. Once the notice of default/lis Penders has been issued, the lender the right to take the house into foreclosure and you need the help of a foreclosure law firm to fight for your right.

Sometimes, bankruptcy is used to stop a foreclosure proceeding. When a bankruptcy claim is filed then an automatic stay is issued, which stop all creditors from any action to call on claim, this includes foreclosure and sheriff sales. Filling for a bankruptcy stop sheriff sales. You should not playing through the nose for a bankruptcy to be filed. If the attorney is asking for more than $1250 to being a chapter 13 bankruptcy filing, you need to look to find bankruptcy attorneys who are trying to help you not take every dime out of your pocket.

A bankruptcy case filed in the United State before the foreclosure sale date, will stop the foreclosure sale from taking place. Under a Chapter 13 bankruptcy plan, you can make regular monthly payment and given a reasonable period of time to bring your loan payment up to date to save your property from being from size and sold to another seller who is able to take your home and evict you from your home. If the bankruptcy filing take place before the foreclosure date, that the foreclosure could be avoided-as long as the referee is made aware of the filing before the sale.

It is crucial that the homeowner be able to start bankruptcy proceeding quickly, and be able to make the fist trustee payment after filing for bankruptcy. Once a notice of default has been issues to the homeowner there can be year of time before a bankruptcy is needed, however, it is easier to get current on a mortgage after it has only been defaulted for a short time compared to being defaulted for year. After this notice has been issued, the home is liable to be seized in foreclosure without the help of a defense law firm. In order for the bankruptcy to be valid and stop the foreclosure-It must be filed before the sheriff sale date. Bankruptcy after the foreclosure date is often unable to protect the home from being seized, and sold to another buyer that can then evict the previous homeowner.

People often wonder which option is worse for the credit of the homeowner – bankruptcy or foreclosure. It is important to remember that both have adverse effect on credit for up to seven years, but bankruptcy could be the key to saving your investment, your home from the creditors. It is to see what you current score is, and what it will look like 12 months after filing for bankruptcy. Many time people credit scores increase by 100 points after declaring bankruptcy and making the required payment. Once a foreclosure is pending many people’s credit score drop at an alarming rate. Bankruptcy could be the new start that you required to get your credit back on track, stop harassing phone calls, and allow you to keep the highest value assets you own

Elena Kitsch is an author of 123nylaw.com one of the best bankruptcy and foreclosure attorney services in New York City, Usa. She has been writing articles on a href ="http://123nylaw.com/"foreclosure defense lawyer for 123nylaw.com