Being proactive and filing for bankruptcy before your house is sold at a sale may help you stop or prevent the foreclosure of your residence. If you want to prevent a foreclosure by filing for bankruptcy in North Carolina, you should contact a North Carolina bankruptcy attorney as soon as you start having serious financial issues.
Bankruptcy and Foreclosure: Automatic Stay, Temporarily Stop Foreclosure
When you file for a Chapter 13 bankruptcy or file for a Chapter 7 bankruptcy, the court will automatically issue an Order for Relief that has a provision for an automatic stay. An automatic stay will prevent your creditors who are listed in your bankruptcy petition from collecting on the debts that you owe them.
Chapter 13 Bankruptcy to Prevent Foreclosure
Chapter 13 bankruptcy is designed to consolidate bills and repay creditors. Your Chapter 13 bankruptcy petition must be filed before a sheriff’s sale, or you will not be able to reinstate your home mortgage. If you file before a sheriff’s sale, you might be able to cure your mortgage arrearages over a period of years under a repayment plan.
Bankruptcy attorney Ken King is a Bankruptcy attorney with over 30 years of legal experience. He and his team of North Carolina bankruptcy attorneys have represented thousands of individuals and families in bankruptcies.