Will Filing for Bankruptcy in Philadelphia Save my House?

  • David M. Offen,
  •   Foreclosure Defense
  •   Comments Off on Will Filing for Bankruptcy in Philadelphia Save my House?

Are you looking for a way to save your home from foreclosure? Are you in a difficult financial situation that bankruptcy is an answer? If you answered yes to both these questions, there are a number of items you need to learn.

Generally speaking, filing for bankruptcy in Philadelphia will put you in position to save your house from foreclosure. You will definitely be in a better spot than you were before filing for bankruptcy protection.

Take for instance Chapter 7 bankruptcy (Chapter 13 works nearly the same way). When you file, you will be doing your part in stopping the foreclosure process, however, this does not put an end to the proceedings entirely. Instead, there are additional steps you need to take in order to make that happen. If you file a Chapter 7 Bankruptcy and you wish to keep the house, you need to get completely caught up very quickly. If that is not possible, you need to work with the lender to try and reach an affordable repayment plan. Otherwise, the filing of bankruptcy in Philadelphia will only delay foreclosure anywhere from one to three months.

If you file a Chapter 13 Bankruptcy, you are allowed up to five years to get caught up on your mortgage arrears. During this time, you will need to continue with your current monthly mortgage payments

When you are delinquent on your mortgage, it is only a matter of time before you receive a foreclosure summons or lawsuit. That being said, when you file for bankruptcy your mortgage lender is unable to move forward without the permission of the Bankruptcy Court. Note: the lender can make a special request to the court known as “motion for relief from automatic stay.” Once this motion is granted, it gives the lender the ability to continue with the foreclosure procedure.

Your lender is required to follow the laws set forth by the state in which you live. For example, some states (judicial foreclosure) are required to file a lawsuit with the state court to foreclose on your home, which is what happens in Pennsylvania while some other states allow a lender to move forward without any court intervention (non-judicial foreclosure).

Tip: don’t be shy about contacting your lender to discuss a loan modification.

Filing for bankruptcy in Philadelphia puts a stop to the foreclosure process. Filing a Chapter 7 case does not necessarily save your house from foreclosure. What it does do is put you in position to protect your property for the time being, while also catching up on back payments and/or modifying your loan. Filing a Chapter 13 case will give you from three to five years to get caught up on your mortgage . You are able to make up missed payments in Chapter 13.  You can also attempt to modify your loan while you are in a Chapter 13 case as well.

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