If you’ve received a Notice of Hearing Prior to Foreclosure in the mail, your rights are about to be affected. This notice means that the bank holding a mortgage on your home is moving forward with the foreclosure process and forgiveness of debt bills that come along with it. There is still time.
The notice tells you when the hearing is and that you have a right to appear before the court to show cause as to why the foreclosure should not take place. Unless you can show the bank does not have a valid deed of trust, or that they have not followed the required process for foreclosure, there is little chance of success in putting off the foreclosure. But you do have options.
You are behind in your mortgage payments, so a Chapter 7 bankruptcy is not available if you desire to keep the house. However, a Chapter 13 bankruptcy is an option. In a Chapter 13 bankruptcy, you repay the arrears on the mortgage over the course of the next five years. Additionally, you will pay back some debt to other creditors. Lastly, you’ll be forgiven the remainder of your unsecured debt (Credit cards, medical bills, etc).
The exact amount of your monthly payment in a Chapter 13 depends upon your income, your debt, and how your creditors would theoretically fare in a Chapter 7. The monthly payment will also include an amount to the bankruptcy trustee and the bankruptcy attorney if you have not already paid the attorney in full. It may sound complicated, but the bankruptcy attorney can help you make sense of it.
By filing a Chapter 13 bankruptcy petition, you put a ‘freeze’ or an automatic stay on the foreclosure process. Your Charlotte bankruptcy lawyer can assist you with this process. The stay will take affect so long as the petition is filed 10 days after the sale date or before. During the automatic stay, you and your attorney will propose a repayment plan in Chapter 13 which will provide you significant relief from credit card and other unsecured debt, and will allow you to get current with your mortgage and preserve home ownership.
If you’d like to speak to an attorney about filing a Chapter 7 or a Chapter 13, please call me at 704.749.7747 to discuss your situation. A call today could lead to a positive change tomorrow.