Automatic Stay: How Bankruptcy Can Stop Foreclosure

When facing a foreclosure, it may seem as if there is no hope for saving your home. However, with the help of an experienced attorney, declaring bankruptcy can help avoid foreclosure. This guidance can provide you and your family with relief from overwhelming debt.

Section 362 of the Bankruptcy Code provides for an automatic stay, which stops all attempts for collection for mortgage payments, credit cards, and other forms of debt.

Attorney Mike Hall explains how in the video below.

However, “A bankruptcy helps with the foreclosure process by stopping the foreclosure. There is something in bankruptcy called the automatic stay, and that is applicable in every bankruptcy. So, once a bankruptcy case is filed, then, of course, the automatic stay comes in place and no creditor is allowed to contact you or to continue a foreclosure or levy or even continue to possess your property once the automatic stay is filed.”

Relief for Homeowners

This news can be a tremendous relief for consumers who are faced with the loss of their family home. They get extra time and help to save their home and other assets. In addition, they get a reprieve from collection efforts that have been plaguing them.

When working with your attorney, it is important to know all of the facts about bankruptcy process. Whether you file Chapter 7 or Chapter 13, you will receive a short time to make a repayment plan. However, as Mike explains, it is important not to wait too long. After a brief window, you will miss the opportunity to take advantage of the automatic stay.

Mike continues:

“Now, if they have gone through a foreclosure sale already and you did not file bankruptcy within the four weeks, then, of course, it’s no longer your property. It is only if it’s still your property that an automatic stay applies. “

If you are facing foreclosure, automatic stay can help, but only if you take action quickly. Homeowners have four weeks from the time a foreclosure notice is posted to catch up on payments or file bankruptcy in order to save their home. Once the sale is complete, there is no way for the homeowner to reclaim the foreclosed property.

Relief From Automatic Stay

Even after filing, creditors can file for a relief of automatic stay, provided that they meet certain requirements. It is not common for relief of stay to be granted in individual bankruptcy cases. However, it is important that creditors and their interests are equally protected. Your lawyer can help you fully understand “relief of automatic stays” and how they will affect your case.

You may know that you need help, but perhaps you are unsure whether you should file Chapter 7 or Chapter 13. It can be difficult to decide what the best choice is. That is why it is important to speak with an attorney who is knowledgeable and experienced.

Experienced Attorneys Near You

If you are in Southeast Georgia, bankruptcy attorney Mike Hall and the team at Hall & Navarro can help you. With decades of experience, Mike can offer you guidance based on your own situation. Every client is unique, but they all have one thing in common. Everyone facing overwhelming debt is simply looking for relief.

With offices in Statesboro and Springfield, Georgia, the attorneys at Hall & Navarro are conveniently located and ready to help you.

If you are facing foreclosure, don’t wait until it’s too late to save your home from foreclosure.  If would like to talk to an attorney who understands and is ready to help, contact Hall & Navarro today. You can begin by filling out our Free Online Bankruptcy Evaluation form. This will help our attorneys understand your situation better so that we can provide you with the best counsel.

Once you have completed the evaluation, you can contact our offices to schedule your free one hour consultation to discuss your case and determine if you should file and under what chapter of the United States Bankruptcy Code. Whether you file Chapter 7 or Chapter 13, having the right bankruptcy lawyer by your side will guarantee that you are fairly represented in court.

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Bankruptcy Attorney
J. Michael Hall

Paige Navarro, Bankruptcy Attorney in Statesboro, GA

Bankruptcy Attorney
Paige Navarro

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