Florida residents who are going through a foreclosure may be interested to learn how a bankruptcy can stall the process. In most cases, filing bankruptcy prior to a foreclosure sale will allow between six weeks and three months of additional time to remain on one’s property.
The mortgage lender probably does not have to begin the foreclosure process again once the bankruptcy is filed but only hold off the sale until receiving an order from the court that the automatic stay has been lifted. The length of the stay may depend upon whether the individual has filed other bankruptcies within the past 12 months. However, most people file only one bankruptcy to try to stall a foreclosure.
People who stall foreclosure by filing bankruptcy usually have other unsecured debt that they wish to eliminate. Attorneys may think it unwise for anyone to file bankruptcy for the sole purpose of being able to remain a few months in the house, especially because a bankruptcy notation can be on a credit report for the next 10 years.
The thought of losing a home to foreclosure can be overwhelming, particularly if a bankruptcy is involved. An attorney may be able help those going through the bankruptcy process understand their rights and the manner in which they are protected under Florida state law. The attorney may be able to offer options regarding saving a home or other assets as well as help them navigate the court system. In addition, the attorney might be able to identify other influencing factors, such as foreclosure fraud and its impact on lenders and homeowners.
Source: FOX Business, “File Bankruptcy to Stall Foreclosure?”, Justin Harelik, October 02, 2013