Being confronted with the possibility of foreclosure is terrifying for anyone who owns a property where they reside. Individuals may not know how to proceed when they are faced with this dilemma. They want to save their home for the sake of their family and be sure that they have somewhere to house their family. There are ways to save your home from being foreclosed. If you are facing financial trouble that may cause your home to be foreclosed on, you may be able to prevent this by filing for bankruptcy. Through the bankruptcy process, an individual’s home can be saved from foreclosure proceedings.
How does bankruptcy stop foreclosure?
When individuals file for bankruptcy, this puts an automatic stay in place. The automatic stay is a useful tool in the bankruptcy process. With an automatic stay, creditors are barred from contacting you. They cannot harass you for compensation anymore. With this in effect, individuals have the breathing room they need to plan for a repayment method and to get their finances in order. This will also have the effect of preventing foreclosure of your home.
Although bankruptcy may seem like a negative process for people, it can prove to be effective. It should not be avoided at all costs. Instead, individuals should use this process when they have no other options available to them. Bankruptcy can help to save your home, ban contact with creditors and develop a better plan for the possibility of a more successful financial future. Individuals can consider Chapter 7 and Chapter 13 bankruptcy proceedings to help them with their situation. Both processes are fairly similar and have benefits to them. With both processes, an automatic stay is put into effect immediately after filing the correct papers.
What is the Foreclosure Settlement Conference?
State laws in New York require parties to enter into a Foreclosure Settlement Conference when action is taken against a residential property. This allows you to apply for a loan modification on your home. When you finish applying for this change, the bank will review your financial ability to determine if you meet the guidelines for a government loan modification program or one provided by the bank. This can help you in the end if you are approved for the modification. It can give you more time to pay back money that you owe.
Matters related to bankruptcy and estate planning are very significant in one’s life and require the services of an experienced attorney. Our firm proudly serves clients throughout Rockland County and New York State. If you need effective legal guidance, contact Koplen Law today to schedule a consultation.