Chevy Chase, MD asked in Bankruptcy for Maryland

Q: I'm about to lose my house to foreclosure and really want to prevent that from happening.

Is filing for bankruptcy my best option?

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4 Lawyer Answers
Timothy Denison
Timothy Denison
Answered
  • Bankruptcy Lawyer
  • Louisville, KY

A: Probably but you need to consular a local attorney who can review your entire financial situation.

Nyasha A. West agrees with this answer

Nyasha A. West
Nyasha A. West
Answered
  • Bankruptcy Lawyer
  • Pikesville, MD
  • Licensed in Maryland

A: Filing bankruptcy creates an automatic stay. The automatic stay prevents creditors from pursuing further legal action against debtors, including foreclosure. There are instances where creditors may legally lift the automatic stay and proceed with collection of the debt, therefore, it is best to seek guidance from an experienced bankruptcy attorney.

Depending on your strategy, either a Chapter 7 bankruptcy filing or a Chapter 13 bankruptcy filing may successfully be used to prevent foreclosure. Most homeowners opt for Chapter 13 as it immediately brings the mortgage current whilst allowing the arrears to be repaid over a period of three to five years.

We have help homeowners prevent foreclosure for nearly ten years.

Andrellos Mitchell
Andrellos Mitchell
Answered
  • Bankruptcy Lawyer
  • Washington, DC

A: It may be. I can't say for sure without reviewing your case. However, if you don't have money to set aside to pay into the reorganization plan for the arrears...it probably wont make any difference in the long run.

Nyasha A. West agrees with this answer

Mark Oakley
Mark Oakley
Answered
  • Rockville, MD
  • Licensed in Maryland

A: Bankruptcy is a delaying strategy to give you time to work out a way to catch up with payments or qualify for modification. It’s also a way to discharge your personal liability on the mortgage balance. If foreclosure proceedings have already been filed, then time is not on your side. Absent a voluntary stay of foreclosure to complete mediation of your foreclosure balance, the ONLY way to stop the foreclosure and cancel the auction sale is to file bankruptcy. That will buy you at least 6 months before they can start again. Talk to an experienced bankruptcy attorney who also knows the modification options for refinancing mortgages going into foreclosure.

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