Can Filing a Clearwater Bankruptcy Stop a Foreclosure of My Home?

When a person files for bankruptcy protection in Florida prior to the actual auction date of their home, the foreclosure process is generally halted. It is important that you seek the help of an experienced Clearwater bankruptcy attorney right away. Even though bankruptcy will stop the process of foreclosure most of the time, the laws and rules governing the foreclosure process in Florida are in a constant flux in order to deal with a real estate situation that has not be seen since the Great Depression.

Immediately following the filing of your Florida Chapter 7 bankruptcy petition an automatic stay order is issued by the Court. This is the order that will stop all legal proceedings and collection efforts against you. In Florida a lender must sue you as part of the foreclosure process and the automatic stay order that is issued will put a temporary stay on their lawsuit while you proceed with your bankruptcy case. It is important to understand that this stay order is not permanent, it is meant to allow you time to organize your financial affairs in order to proceed with your bankruptcy. A creditor can petition the Court and seek to have the stay order lifted. If they succeed in this action, they will be legally permitted to continue with their lawsuit or other collection efforts.

If you and your Clearwater bankruptcy attorney decide that filing for a Florida Chapter 13 bankruptcy is better suited for your financial situation, you will also be able to halt a foreclosure preceding. In most Chapter 13 bankruptcies you will even be able to pay your mortgage and arrears through your repayment plan while maintaining possession of your property.

With the recent meltdown of the housing market many homeowners are up-side-down on their real estate holdings. This means that they owe more on their property than the property is worth. In certain Chapter 13 bankruptcy cases a qualified Clearwater bankruptcy attorney will seek to have your mortgage crammed down to the current appraised value of the home. As long as you stay current with your Chapter 13 repayment plan, there should not be any attempts to foreclose on your home after filing for bankruptcy.

The real estate market collapse has left the experts, courts, and lawmakers unsure what the future will hold and what to do in order to stabilize pricing. In Palm Beach County, a Court has actually refused to take on any new foreclosure cases due to the lack of funding and extreme volume of foreclosure cases being filed. Another large issue with all of the recent foreclosure lawsuits has been with the abundant fraud perpetrated by some lenders and law firms. David Stern ran one of the largest foreclosure mills and recently decided to just close up shop, leaving all of his clients in limbo. On top of that many of his files were not turned over to the lender’s new attorney which has led to more confusion and problems for their cases.

Filing for bankruptcy is a serious step to take that needs to be thoroughly reviewed and considered from all angles prior to taking any actions. If you are facing a foreclosure and a growing pile of bills, you need to seek the help of an experienced Clearwater bankruptcy attorney. They will be able to review your case and determine if filing for bankruptcy is right for you and which chapter of bankruptcy will suit your needs best.

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