QUESTION
I own my home and want to file chapter 7 to stop from a sale, can I later switch to chapter 13?
Asked on Jan 17th, 2013 on Bankruptcy - New Jersey
More details to this question:
How soon do I go to court? Will it be 120 days from that point and does a stay stop a foreclosure or sale?
11 ANSWERS
If you are behind on your mortgage, you might as well save some money and file a chapter 13. To save your home, you would have to convert a 7 to a 13 or pay the arrearages off. Otherwise, the creditor will just lift the stay and proceed with foreclosure. The bankruptcy stay (in a 13 or a 7) will halt the foreclosure, until it is lifted. You will go to your 341 hearing in 4 to 8 weeks from the date of filing.
Answered on Jan 28th, 2013 at 7:50 PM
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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Yes, you can convert a chapter 7 to a chapter 13, if it wasn't earlier converted. But seek the advice of a competent Austin bankruptcy lawyer, if you live in this district, to determine whether that is the best course of action for you to save your home from foreclosure.
Answered on Jan 21st, 2013 at 11:45 PM
Daniel James Wilson
Why not just file a 13? Auto stay goes into effect when you file.
Answered on Jan 21st, 2013 at 1:40 PM
Bankruptcy Attorney serving Denver, CO
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Colorado Bankruptcy Law Group, LLC
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If you are behind on your mortgage payments and can't bring the loan current, chapter 7 may only delay the foreclosure sale. You can later convert to chapter 13 to bring the mortgage current (if you can come with a feasible plan). You might consider just filing the chapter 13 instead of a 7. Chapter 13 can stop a foreclosure sale, but there may be details that you haven't provided that would result in a sale only being delayed. Generally, you do not go to court when you file bankruptcy. You will go the "meeting of creditors" which does not involve a judge. That happens about a month after your case is filed. The foreclosure sale date (if the lender gets the court to lift the automatic stay) is not related to the meeting of creditors date. Your best bet would be to talk to an attorney about the specifics of your situation. Most offer free consultations and you'll leave with a better idea of how bankruptcy may be able to help you.
Answered on Jan 17th, 2013 at 12:44 PM
Richard hirsh
You have a right to convert a chapter 7 to a chapter 13 case however you should not convert your case unless you actually qualify as a chapter 13 debtor under section 109 of the Bankruptcy Code. In either case the automatic stay does stop a foreclosure sale.
Answered on Jan 17th, 2013 at 12:43 PM
Deborah F. Bowinski
A chapter 7 bankruptcy filing will stop a foreclosure sale for a time, but how long depends upon the lender and where in the foreclosure timeline you are when the chapter 7 is filed. You are permitted to convert a chapter 7 case to a chapter 13 case. But, again, there are other factors that come into play in determining whether such a conversion will effectively work to save the property. Your best option will be to consult with an experienced bankruptcy attorney to review your situation and to determine what your best and most practical options are to help you obtain relief and keep your home (if that is the ultimate goal).
Answered on Jan 17th, 2013 at 12:42 PM
You need to contact a bankruptcy attorney immediately, many options available to you. However, you lose some of these options if you wait too long. For example, if you file after the foreclosure sale has been held, your 13 remedies are very much reduced.
Answered on Jan 17th, 2013 at 12:42 PM
If you file a Chapter 7, you can expect the mortgage company to squawk and ask the bankruptcy court to release the property back for foreclosure. While you could convert to a Chapter 13, acting this way will cause you a lot of complications. The better strategy would be the reverse, file Chapter 13 and convert if you can make a deal with the mortgage company. Either way, you should invest in a qualified local bankruptcy attorney to represent you.
Answered on Jan 17th, 2013 at 12:41 PM
Bankruptcy Attorney serving Buford, GA
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Kenneth A. Parker, PC
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A Chapter 7 will stall the foreclosure but generally will not prevent it. If your goal is to save the house, you may be better off filing a Chapter 13 and possibly converting to a Chapter 7 when your house payments are current. When you file a Chapter 7, there is no automatic right to convert to a Chapter 13. Once we file our case, you generally go to a section 341 meeting (named after section 341 of the Bankruptcy Code) about a month after your case is filed. As soon as your case is filed, the Automatic Stay halts the foreclosure but like I said above, a Chapter 7 will only stall the foreclosure.
Answered on Jan 17th, 2013 at 12:39 PM
Chapter 13 Bankruptcy Attorney serving Winston-Salem, NC
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Love and Dillenbeck Law
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You need to speak to a bankruptcy attorney. It will be difficult to do what you are proposing pro se...also a Chapter 7 may not stop he sale for very long. If the home is in foreclosure, the mortgage company can ask for relief from the automatic stay in the case ad once it is granted, you will not be able to save the home even if you convert to a chapter 13. You need to file a 13 if you want to save your home.
Answered on Jan 17th, 2013 at 12:32 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
2 Awards
The stay will stop the foreclosure until they make a motion before the court to lift the stay. If you are trying to save house, better choice is c13. You can convert at anytime before 341.
Answered on Jan 17th, 2013 at 12:31 PM