Being confronted with the possibility of foreclosure is terrifying for anyone who owns a home. Those who are faced with this dilemma may not know how to proceed. Of course, they want to save their home for the sake of their family and be sure that they have somewhere to live. There are ways to save your home from being foreclosed. If you are facing financial trouble that may cause your home to be foreclosed on, you may be able to prevent this by filing for bankruptcy. Through the bankruptcy process, an individual’s home can be saved from foreclosure proceedings.
How does bankruptcy stop foreclosure?
When individuals file for bankruptcy, an automatic stay immediately goes into effect. The automatic stay is a useful tool in the bankruptcy process. With an automatic stay, creditors are barred from contacting you. They cannot harass you about the money you owe anymore. With this in effect, you will be afforded the breathing room you need to plan for a repayment method and to get your finances in order. Additionally, the automatic stay puts a stop to the foreclosure of your home.
Although bankruptcy may seem like a negative process for people, it has proven to be effective. It should not be avoided at all costs. Instead, you should use this process when they have no other options available to them. Bankruptcy can help to save your home, ban contact with creditors and develop a better plan for the possibility of a more successful financial future. Depending on your situation, you may be eligible for either a Chapter 7 or Chapter 13 bankruptcy.
What is the Foreclosure Settlement Conference?
State laws in New York require parties to enter into a Foreclosure Settlement Conference when action is taken against a residential property. This allows you to apply for a loan modification on your home. When you finish applying for this change, the bank will review your financial ability to determine if you meet the guidelines for a government loan modification program or one provided by the bank. This can help you in the end if you are approved for the modification. It can give you more time to pay back money that you owe.
If you need help filing for bankruptcy in New York, contact our firm today.
Zimmet Law Group, P.C. is an experienced team of attorneys guiding clients through matters of estate planning and administration, divorce and family law, real estate, commercial litigation, business law, bankruptcy, and landlord-tenant law. If you require the services of an effective New York City attorney, contact our firm today to schedule a consultation.