Q: I filed for bankruptcy in December of 2021. Could the servicer foreclose on me in 2022?
I filed for chapter 7 bankruptcy in 2021. The courts discharged my mortgage on my home. The servicer transferred the mortgage to a new servicer. The servicer has indicated that they have accrued nearly $5,000 in legal fees. Is the servicer legally able to foreclose on me within one year of my bankruptcy? I thought there was a rule that allowed me at least one year to live in my home, following bankruptcy without the servicer foreclosing. Is this true? Could the servicer be in violation of the law for foreclosing too soon?
A: There is no law that allows a person to live in their home if they are not paying the mortgage. If you filed Chapter 7 then you either intended to surrender the home or redeem (pay off the entire mortgage).
There is nothing stopping a lender from foreclosing after a bankruptcy is Discharged or Relief from Stay is awarded beforehand. The lender cannot begin foreclosure during a Bankruptcy case before the occurrence of either hypothetical.
Otherwise, no. There is no law the avails a grace period that bars foreclosure after a bankruptcy concludes.
Good luck with your case!
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