Bankruptcy And Foreclosure: Getting The Debt Relief You Need
Medical expenses, the loss of a job and other financial emergencies can have a sudden and severe impact on all aspects of your life. If you miss or are even just late in making your monthly mortgage payment, your lender may begin foreclosure proceedings. The good news is you can take legal actions that can enable you to delay or avoid foreclosure altogether. Filing for bankruptcy protection will automatically put a temporary stop to foreclosure actions, providing you with the time you need to catch up on your outstanding payments or to explore alternative housing options.
At Affordable Law, PC, our attorney has been helping people throughout New Mexico get the debt relief that they need for more than 20 years. If you have fallen behind on your mortgage payments or if your home is already in foreclosure, we can help explore your legal options and determine the best path forward.
Stopping Foreclosure Actions
When you file for bankruptcy protection, the court will issue an order for relief or an “automatic stay,” which will direct creditors to immediately cease all collections activities, including foreclosure actions. If your home is scheduled for a foreclosure sale, this date must be delayed while your bankruptcy is pending, a process that takes months, providing you with much needed time to get your financial affairs in order. However, there are circumstances where your lender may be able to lift the stay, which is why having an experienced bankruptcy lawyer in your corner is essential.
Determining Which Bankruptcy Option Is Right For You
Most individuals will file for either Chapter 7 bankruptcy or Chapter 13 bankruptcy protection. Chapter 7 will effectively cancel all your outstanding debt, including outstanding mortgage payments. However, you will still likely lose your home to foreclosure if you file for Chapter 7. Chapter 13 enables you to reorganize your debt and to establish an affordable repayment plan. For some people, this can provide them with the breathing room they need to catch up on past housing payments and allowing them to stay in their homes. Our lawyer will thoroughly review the circumstances of your case and help you decide which bankruptcy option is best for your situation.
Behind On Your Mortgage Payments? Our Law Firm Can Help.
If you are facing the threat of foreclosure, legal help is available. To schedule a free initial consultation, call our law office in Albuquerque at 505-633-8723. You may also contact us online and we will respond to your message promptly.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.