The Dynamics of Stopping Foreclosure by Filing for Bankruptcy
Everyone has those moments when they are broke- even the wealthiest of people on this planet. They are not exactly moneyless but rather their money is with someone else. However, when you have loans and you are unable to pay them, you have to face the fact that you are broke. This is by filing for bankruptcy. Let it be known right from the start that this is not the only way to get out of debts. In fact, it is not the best way to get out of debt. When you want to stop foreclosure, it is among the best though.
Many people want to understand how to stop foreclosure NYC by filing for bankruptcy. The dynamics of this process are not so clear. As such, a majority of people choose to go about the process on their own. It is worth mentioning that the most important thing in a bankruptcy case is to get in touch with an excellent bankruptcy attorney. It sounds pointless to find a lawyer who you will pay money when your biggest problem is money. Nevertheless, your property is at stake and you want to prevent your creditor from seizing it and so a lawyer will come in really handy.
Getting out of debt
When you get in touch with the best bankruptcy attorney NYC has to offer, you will explore some methods of getting out of debt before filing for bankruptcy. Bankruptcy attorneys have a really good understanding of financial management. They are able to provide you with advice on how you can get out of debt. Sometimes, you do not need to go through the whole process of filing for bankruptcy. You could go for options like debt consolidation and debt settlement. These two processes also require the assistance of an attorney especially the debt settlement.
Filing for bankruptcy is the most drastic option. It is usually the last resort when you are completely broke and you are not able to make your payments comfortably. The first thing that you need to do in order to file for bankruptcy is take the credit counseling courses. These can be taken right from the comfort of your home nowadays all thanks to internet technology. A good attorney is going to guide you to the best place to access these classes.
How bankruptcy stalls foreclosure
Another thing that your lawyer will help you out with is figuring out whether you should file for Chapter 7 or Chapter 7 bankruptcy. They can be a bit tricky. The court will automatically issue an order which is called the order for relief. This order includes an ‘automatic stay’. The automatic stay is basically a directive to your creditors to stall their collection activities with immediate effect. In other words, if your house was in the lineup for foreclosure sale, the sale is going to be postponed.
The bankruptcy will be put pending for about three or four months- typically. In this time your creditor cannot sell your home. There is the likelihood that your creditor will file for a ‘motion to lift stay’. This gives them the permission to proceed with the sale.
These are the basics of how to stop foreclosure by using the bankruptcy method. The fact that you need an attorney to help you out cannot be emphasized more than it has. Usually bankruptcy attorneys do not charge a fortune for their services. They do understand that you are having financial issues and therefore will not push you to your limits with ridiculously high legal fees. They are going to help you out in the whole process of filing ensuring that you beat all filing deadlines.