Bankruptcy Law Firm Oklahoma City, OK
Deciding whether to file for bankruptcy is never easy. While many homeowners anticipate being able to pay their mortgage every month, sometimes unexpected things happen that can result in financial difficulty. A homeowner may wonder whether filing for bankruptcy could help prevent foreclosure. As soon as a notice of foreclosure is received, a homeowner may benefit from meeting with a bankruptcy law firm Oklahoma City, OK residents trust for guidance concerning their next steps. Risk of foreclosure should always be taken seriously, as the homeowner and their family may be at risk of having to relocate in the event a foreclosure action is finalized. Thankfully, the legal team at The Law Offices of Marty D. Martin has extensive experience with this issue and we’re here to help.
Does filing for bankruptcy always work in preventing foreclosure?
While filing for bankruptcy is a common way for homeowners to avoid foreclosure, this approach does not always work. There are instances where the foreclosure may continue regardless of a bankruptcy filing. For example, a homeowner who was approved to operate under Chapter 13 bankruptcy, but does not maintain monthly payments, may be at risk for losing their home. If a homeowner is approved to operate under Chapter 7 bankruptcy, the bank lender may request to the courts for a motion of relief from stay. If granted, the automatic stay will no longer be enforced for that debt and the foreclosure could continue. As a result, it is important to speak with an experienced Oklahoma City, OK bankruptcy law firm before making any assumptions about whether bankruptcy will work to halt foreclosure in your situation specifically.
What is the best way to figure out whether bankruptcy is right for my situation?
A homeowner may want to consult with an Oklahoma City, OK bankruptcy law firm that is experienced in representing clients facing foreclosure before applying for bankruptcy relief. An Oklahoma City, OK bankruptcy law firm can offer insight on which chapter may be most suitable, based on the homeowner’s individual circumstances.
Can applying for bankruptcy relief make the situation worse?
A homeowner may understandably react with panic after receiving the foreclosure notice and want to take action right away. But, it may make matters even worse if the homeowner files for a chapter of bankruptcy that is not in his or her best interest. This may result in sinking into an even deeper financial hardship.
The bankruptcy chapter that may work most favorably for the homeowner, will be based on a variety of factors. A homeowner who applies for Chapter 7 may find the process is much quicker than Chapter 13, but the bank may still be able to continue along with the foreclosure. It is important a homeowner understands that while an automatic stay is enforced, the bank can still get court approval to sell the foreclosed property even when the homeowner’s status is live under Chapter 7 bankruptcy.
Chapter 13 bankruptcy may be more fitting for a homeowner who is able to pay back a portion of their debts related to the loan. Under this chapter, the homeowner is likely to have to pay money into a repayment plan over the next three to fives years. If the homeowner is unable to maintain such payments under bankruptcy, then the foreclosure process may continue. Please consider contacting our Oklahoma City, OK bankruptcy law firm today so that we can advise you of your options and help you to protect your rights as a homeowner.