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If you are facing foreclosure on your home, bankruptcy may be a good option to save your home while reducing or discharging other debts. Filing for bankruptcy can, at a minimum, delay foreclosure by months and give you a chance to catch up or it can be used to save your home.
Automatic Stay to Delay Foreclosure
Filing Chapter 7 or Chapter 13 bankruptcy automatically grants you protection from most creditor actions under the automatic stay order. The automatic stay requires creditors to stop collection activities immediately, including foreclosure. If your home is already scheduled for a foreclosure sale, the sale will be postponed while your bankruptcy case is pending, which is usually 3-4 months.
There are a few exceptions to the automatic stay. A lender can get the court’s permission to lift the stay and proceed with the sale. Still, filing for bankruptcy can postpone the sale by a minimum of two months.
If the foreclosure notice is already filed, the automatic stay will not stop the clock on the advance notice that Nevada requires before the sale can be held.
Stop Foreclosure with Chapter 13
Even if you have already received a foreclosure notice, you can still save your home if you file for Chapter 13 bankruptcy. Unlike Chapter 7, which will merely delay the sale, Chapter 13 can stop the foreclosure while allowing you to cure the default before your home is sold.
With Chapter 13, you can catch up on behind mortgage payments over 3-5 years through your repayment plan. This can be an affordable way to cure your default over the years without losing your home. Once your repayment plan is complete, you will no longer be in default on your mortgage.
Emergency Bankruptcy Petition
If you do not have time to complete bankruptcy forms, schedules, and credit counseling before your scheduled foreclosure sale, you have the option of filing an emergency bankruptcy petition for immediate protection under the automatic stay. After filing an emergency petition, you have 14 days to complete the remaining paperwork and file it with the court.
Contact a Las Vegas Bankruptcy Foreclosure Attorney
If you are facing foreclosure on your home, it’s important to seek legal counsel from an experienced bankruptcy attorney as soon as possible if you want to keep your home. An attorney can explain your options and how bankruptcy can help you delay foreclosure or even cure the default. Contact Las Vegas for a free consultation with a Nevada bankruptcy lawyer to discuss your case.