How Chapter 13 Can Stop Foreclosure in Queens
How bankruptcy may help save your home
Foreclosure doesn’t happen overnight. The process usually doesn’t even begin until you have missed several payments on your mortgage, putting your lender in a position to force the sale of your home to get the money owed. That gives you time to try different options to avoid foreclosure.
But if alternate measures such as a loan modification or a short sale don’t solve your problem, you still have an opportunity to save your home: Chapter 13 bankruptcy can stop foreclosure. In Queens, Mark E. Cohen, Esq. has the experience and skill to guide you through the process from start to finish.
Delaying vs. stopping foreclosure
When you file for either Chapter 7 or Chapter 13 bankruptcy, you are automatically granted an order of relief by the court. The order includes an automatic stay, a temporary action that puts your home and other property under protection from creditors. If your home is already scheduled for a foreclosure sale, that sale is legally postponed while the bankruptcy is pending. In effect:
- Filing for Chapter 7 bankruptcy can delay foreclosure for several months while the court determines what property of yours will be taken to pay your creditors (nonexempt property) and what property you keep (exempt property)
- Filing for Chapter 13 bankruptcy can avoid foreclosure by allowing you time to pay off the arrearage, or missed payments, in addition to your regular monthly payments
The best way to fully understand the options and opportunities available to you is to work closely with a Queens Chapter 13 attorney. I have handled bankruptcy exclusively for more than 30 years. If you are at risk of losing your home, I carefully and objectively evaluate your situation and give you my best recommendation.
New York’s increased homestead exemption
Bankruptcy exemptions vary from state to state. The good news for New Yorkers is that legislation changes in 2011 greatly increased the exemptions for individuals and families, making it easier to eliminate their debts while protecting their assets.
In particular, the homestead exemption increased significantly, so you can protect a much greater amount of equity in your home without jeopardizing your ability to file for bankruptcy. To learn more about New York’s revised bankruptcy exemptions, meet with me for a free initial consultation. I am happy to go over your bankruptcy options and how they affect your mortgage. My goal is to give you the information you need to make the decision that is just right for you.
To ease the stress of overwhelming debt, call a bankruptcy and real estate lawyer in Queens
All too often, good people find themselves in financial trouble that quickly spirals out of control. For more than 30 years, I have helped people like you understand the available options, make informed decisions and navigate through the complex process of filing for bankruptcy.
Located on Old Country Road in Westbury, I offer a wide range of services to individuals and families suffering from the weight of debt. Call Mark E. Cohen, Esq. at 718-223-5492 or contact me online to schedule a free consultation.