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Using Chapter 7 to Delay Foreclosure


Chapter 7

How Much Time Are You Buying?

There are many reasons to file for Chapter 7 bankruptcy. Many people make this decision because they are facing foreclosure and are looking for a way to buy some time.

While this may not be the only reason to file, if you find yourself in this position, it is a strategy you should consider. If you find yourself in need of a Chapter 7 bankruptcy lawyer in PA, contact The Law Offices of David M. Offen at (215) 278-4519.

How Long Do You Have?

Generally speaking, Chapter 7 bankruptcy takes three to four months from the date of filing to discharge. During this time, your lender is not able to move forward with the foreclosure process. The only exception is if the judge grants permission for the lender to do so.

Note: it is a possibility that the lender could file a motion to have the automatic stay lifted. If this happens, and the judge approves, the foreclosure can proceed as planned. Fortunately for the homeowner, the lender is typically required to provide a minimum of 25 days advance notice of the hearing.

Most of the time, even if the automatic stay is lifted, you are still looking at three to four months during which the foreclosure process remains at a standstill.

Of course, this doesn’t mean that everything will be better once your debts are discharged. Unlike Chapter 13, you are unable to make up missed payments through a repayment plan. For this reason, you need to consider your other options, such as a short sale or loan modification.

You can use Chapter 7 bankruptcy to your advantage, such as by delaying the foreclosure process. Doing so will buy you a few months of time, which may be enough to figure out a plan for moving forward.

Do you have questions about the foreclosure process? Are you interested in learning more about the benefits of Chapter 7 bankruptcy? If so, we can guide you in the appropriate direction. Contact us for more information.

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