Can my house go into foreclosure while I am filing for bankruptcy? 23 Answers as of June 26, 2013

I had to stop paying on a lot that was under water because I had already lost everything in two other properties. The bank has now filed a judgment against me. I am living in a home and have been here for two years or so and I am two payments behind on the mortgage. I have not been able to find a job. If I caught up my payments can I keep my house? What happens if it goes to foreclosure while I am filing bankruptcy or does the house get included in the debts in the foreclosure?

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Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
A BK filing will stay any foreclosure proceedings. If you file a Ch 7, you will need to figure out how you're going to resolve the house if you want to keep it. In a Ch 13, you need to become current before getting your plan confirmed.
Answer Applies to: Washington
Replied: 8/24/2011
Lehn Law, PA
Lehn Law, PA | Joseph W. Lehn
It depends on the Chapter you file. If you file a Chapter 7, you will need to be current on that mortgage to keep your house. If you file a Chapter 13, you can file despite being behind, but you will have to pay the arrearage and all mortage payments through the plan for the life of your plan that will be assessed a percentage to the trustee.If you decide to surrender the house, you can file bankruptcy to discharge any deficiency that results from the foreclosure.
Answer Applies to: Florida
Replied: 8/24/2011
Financial Relief Law Center
Financial Relief Law Center | Mark Alonso
If you are only two payments behind, and you brought yourself current, then yes, you will be able to stay in your home. The concern, however, is if you can continue to afford and pay for the house, if you are not working steadily going forward. To answer your question, the lender cannot foreclose while you are in bankruptcy, however, if you are filing a chapter 7 bankruptcy (which is your only option b/c you cannot file for ch. 13 if you have no income) then the ch. 7 will not be able to keep your home out of foreclosure in the long run. By this I mean that if/when you file a ch. 7, it will automatically put into play an "automatic stay" which will automatically stop collections activity. However, since ch. 7's do not pertain to mortgage debt, you may have the benefit of the automatic stay for a short period of time (maybe a few weeks or so) until the lender obtains relief from the stay, in which case they can resume foreclosure actions. Right now, if you are only 2 payments behind, the lender cannot foreclose on you, as you would have to be 90 days behind on the mortgage to receive the Notice of Default followed by another 90 days behind in order to receive the Notice of Trustee's sale, which would assign a sale date to your property 21 days from the date of that Notice of Trustee's Sale. If you want to save your house and you are working at some point, then a ch. 13 bankruptcy and or a loan modification may be helpful to you. I would recommend speaking with an attorney about your situation to obtain the full picture of your finances.
Answer Applies to: California
Replied: 8/22/2011
Heupel Law
Heupel Law | Kevin Heupel
Yes, if you are current on your mortgage payments, then you can keep your home even though you filed bankruptcy.
Answer Applies to: Colorado
Replied: 8/22/2011
Dan Wilson Bankruptcy
Dan Wilson Bankruptcy | Dan Wilson
If you file a bankruptcy BEFORE the foreclosure sale it will stop the foreclosure temporarily. If you file during or before the publication period you can delay foreclosure for longest time. If mortgage makes sense you can make up arrears in a Chapter 13. What do I mean "if the mortgage makes sense?" Unless you are an exception from the vast majority you have no equity in the house. You are paying rent. Ask yourself: What kind and how much house could I rent for my current mortgage payment? Could I rent acceptable housing for less than my mortgage? It might make sense to let house go into foreclosure, live rent free for as long as possible and move. Or maybe it makes sense to stay in the house. You need an experienced BK attorney to analyze your situation.
Answer Applies to: Colorado
Replied: 8/19/2011
    Colorado Legal Solutions
    Colorado Legal Solutions | Stephen Harkess
    You cannot file bankruptcy and keep your house without paying for it. However, as long as you catch up your mortgage payments before the foreclosure sale, you can keep your house. Your bankruptcy filing may delay a foreclosure sale for some period of time (depending on the type of bankruptcy) but you will have to make some arrangement to become current in order to keep your house. You should discuss your specific situation with an experienced bankruptcy attorney to determine the bestway to proceed.
    Answer Applies to: Colorado
    Replied: 8/19/2011
    Eric J. Benzer, Attorney at Law
    Eric J. Benzer, Attorney at Law | Eric Benzer
    No.
    Answer Applies to: Maryland
    Replied: 6/9/2013
    Law Offices of Joseph A. Mannis
    Law Offices of Joseph A. Mannis | Todd Mannis
    The bank cannot initiate or continue foreclosure proceedings while you are in bankruptcy without requesting and obtaining formal permission from the Bankruptcy Court.
    Answer Applies to: California
    Replied: 8/19/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    If you are behind in mortgage payments a foreclosure can be instituted. If you file bankruptcy before the foreclosure starts it will delay the process, perhaps giving you time to catch up on payments. If you decide to let the house go in bankruptcy you will no longer have personal liability for the payment.
    Answer Applies to: California
    Replied: 8/19/2011
    Tucker Legal Clinic
    Tucker Legal Clinic | Samuel Tucker
    You need to file Ch 13 to save your home.
    Answer Applies to: Mississippi
    Replied: 8/19/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    First of all, do not file bankruptcy without a lawyer. You will screw up the home. With a lawyer, you may have ways to keep the home and stop foreclosure, or at least delay foreclosure. The money for the lawyer will be well worth it.
    Answer Applies to: Georgia
    Replied: 8/18/2011
    Charles Schneider, P.C.
    Charles Schneider, P.C. | Charles J. Schneider
    Whether you can keep an asset depends on its value and whether that value is within the exemption (the bundle of property that you are permitted to keep by law to make a fresh start in life) limits permitted. Generally bankruptcy protects you from a foreclosure at least temporarily in a Chapter 7, however in a Chapter 13 if you can cure the arrearage while maintaining the monthly mortgage payment under a plan of repayment can you do so permanently.
    Answer Applies to: Michigan
    Replied: 8/18/2011
    Ross Smith, Attorney at Law
    Ross Smith, Attorney at Law | Charles Ross Smith III
    Your question is unclear and I don't know how the bank's judgments sit as to your present home. Here's a little good news. It takes 8 - 12 months in most Ohio counties to complete a foreclosure. And, generally speaking a bankruptcy freezes all law suits in place, including foreclosures. If you are only 2 payments behind you can usually get caught up in the 120 day period of a Chapter 7 bankruptcy, if you only had a job. If you need a longer time, perhaps a Chapter 13 plan would suit you. You have to have a job to file a 13, or at least some income. You could take 3-5 years to get your mortgage caught up In a Chapter 13. But 13s are complicated. You need to find an experienced bankruptcy attorney that givesinitial consultations at no cost. Good luck.
    Answer Applies to: Ohio
    Replied: 8/18/2011
    Lewis Adams and Associates
    Lewis Adams and Associates | Lewis P. Adams
    Once a petition in bankruptcy is filed, it stops all foreclosures and any other collection or legal matters. If you bring it current, you keep the house.
    Answer Applies to: Utah
    Replied: 8/18/2011
    CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE).
    CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE). | Gary Lee Lane
    Not after filed unless removed.
    Answer Applies to: California
    Replied: 6/26/2013
    Theodore N. Stapleton, PC
    Theodore N. Stapleton, PC | Theodore N. Stapleton
    The automatic stay stops foreclosures as long as the case is filed before the foreclosure sale. I am happy to discuss these issues with you.
    Answer Applies to: Georgia
    Replied: 8/18/2011
    Melinda Murphy Dionne, PC
    Melinda Murphy Dionne, PC | Melinda Murphy Dionne
    You should be able to keep your house if you catch up your payments and pay any charges that the Bank adds for attorney fees, late fees, or foreclosure costs. You should note that if the judgment is recorded in the probate court for the county where your home is located the judgment will be a lien on the property. If you file bankruptcy before the foreclosure sale, you can stop the foreclosure and cure any default through a Chapter 13 bankruptcy case. However, you can only file Chapter 13 if you have a source of regular income. If you file Chapter 7 bankruptcy, the amount you owe on the home will be included in your case. If you decide to give up the home in a Chapter 7 case, you will receive a discharge from the debt owed on the home.
    Answer Applies to: Alabama
    Replied: 8/18/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    If you catch up you can keep it. The bankruptcy will slow down the foreclosure as they need the court's permission to proceed. You do need to list all of your debts in your bankruptcy case - that does not necessarily mean you will lose your house.
    Answer Applies to: California
    Replied: 8/18/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    Here's another case where you should engage a bankruptcy lawyer. S/he may be able to help you figure out where to come up with the money, or may be able to convince the lender to give you a break, or to show you how to file a Ch. 13 and keep the house. Yes, the lender can foreclose (with court permission) when you're late and you file a Ch. 7. If you take my prior advice they may not do it.
    Answer Applies to: Virginia
    Replied: 8/18/2011
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    You must list all assets and debts in your bankruptcy. You can choose what secured assets, like your house, you wish to keep. You must be current at the time you file if you file a 7 or be able to make a quick cure. If you file a Chapter 13 you may cure the arrears on the mortgage over time and simply resume making payments. You would need to have an income sufficient to pay the mortgage and a plan payment. The lender is stayed from foreclosing for a time, but can ask the bankruptcy court for permission to resume if payments are not forthcoming. I highly recommend discussing this in more detail with an attorney as this is a very simple explanation of the process.
    Answer Applies to: Nevada
    Replied: 8/18/2011
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    In order to keep a home in a bankruptcy, you have to keep making payments. You are able to file a Chapter 7 bankruptcy, but if you are behind on the mortgage the creditor will file for relief of stay so they can foreclose. So, if you intend to file a Chapter 7 case you need to get current and keep the payments current. If you are going to file a Chapter 13, you can pay past due payments over time in your Chapter 13 Plan. However, you will need to make future payments. If you have no income and cannot pay the mortgage, you will not be able to keep the home. You could include the debt in the bankruptcy so that you will not have any personal liability after the case is filed.
    Answer Applies to: California
    Replied: 8/18/2011
    Law Office of Michael Johnson
    Law Office of Michael Johnson | Michael Johnson
    Yes.
    Answer Applies to: Florida
    Replied: 6/9/2013
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