QUESTION
Can I file bankruptcy and stop foreclosure or is a loan modification possible?
Asked on Sep 30th, 2016 on Bankruptcy - Nevada
7 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Filing bankruptcy will stop a foreclosure, you can still get a loan modification while you are in bankruptcy.
Answered on Oct 27th, 2016 at 7:48 PM
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You should do both: 1) fill out and send in a loan modification request to your mortgage lender and 2) consult with a bankruptcy attorney regarding a chapter 13 so that you are prepare to do that in the event the lender does not approve a modification. In the mean time, make a full mortgage payment (plus late fees) whenever you have funds available.
Answered on Oct 26th, 2016 at 7:30 PM
Depends on your financial situation. I would attempt the loan modification first. But be careful - keep your eye on the foreclosure sale date. Do NOT relax just because they are talking to you about a loan modification. Pay an experienced BK lawyer for one hour of their time to discuss your options with you. It will be money well spent. Good luck!
Answered on Oct 25th, 2016 at 7:57 AM
Explore all opportunities for a loan modification before filing for bankruptcy. Use bankruptcy only as a last resort after an actual date is set for the foreclosure. Sometimes an application for modification, by itself, will postpone foreclosure.
Answered on Oct 21st, 2016 at 11:54 AM
Filing bankruptcy may not stop a foreclosure, but may only slow it down. There are two ways to deal with debt in bankruptcy, and without a lot of additional information about your situation, it is impossible to recommend any particular action to you. As a general rule, unless you have an overwhelming amount of other debt, bankruptcy should probably be the last option you chose to resolve your foreclosure. Bankruptcy attorneys do have access to a wide variety of tools to help you resolve your foreclosure.
Answered on Oct 21st, 2016 at 11:53 AM
Filing BK will temporarily stop a sale but since the debt is secured it is not a final solution.
Answered on Oct 21st, 2016 at 11:53 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Nothing keeps you from seeking a loan modification. A bankruptcy will stop a foreclosure-but how long it can stave it off depends on Chapter in which you file, and whether you can produce a confirmable Plan. Consult an experienced bankruptcy lawyer; It's almost always worth the investment.
Answered on Oct 21st, 2016 at 11:53 AM