Taos, NM asked in Foreclosure for New Mexico

Q: If I go into bankruptcy, does that stay a foreclosure?

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1 Lawyer Answer

Arun Arjan Melwani

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Answered
  • Albuquerque, NM
  • Licensed in New Mexico

A: Yes, but the stay will only last the during the bankruptcy proceeding and the creditor may ask that the Court to terminate the stay. The judge in the bankruptcy case will make that determination based on the type of bankruptcy you filed and the circumstances involved. Usually, a judge will grant relief or modification of the stay if the creditor can show that there is not adequate protection or the debtor does not have equity in the property (usually meaning that the collateral, a house in this case, is worth less than what is owed on the debt); and that such property is not needed for an effective reorganization. If you are facing foreclosure, I suggest you consult with an attorney right away to determine what options you may have.

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