Q: Should my mortgage company foreclose my house if I filed for bankruptcy and informed them about it with my case #?
In Texas, if I filed for bankruptcy, informed my mortgage company about it with my case # and got jailed for a different reason before the bankruptcy got concluded, should it be in effect or should my mortgage company foreclose my house? Do I have any legal option if the mortgage company foreclosed my house?
A:
If this was your first case the mortgage company should not have foreclosed while the automatic stay was in place. The automatic stay is in force from the time the case is filed until it is lifted or your case is dismissed. Getting locked up does not terminate the stay. Having your case dismissed terminates the stay.
Once the stay is terminated all creditors are free to resume collection activities including but not limited to repossession and foreclosure. If this was your second or third case in the last 12 months things get complicated fast.
Contact your attorney and if you do not have one now is the time to hire one. Contact a local bankruptcy attorney and schedule a consultation to determine your options. You can search for an attorney using the Justia "Find a Lawyer" link at the top of this page.
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