When you make the decision to file for Chapter 7 bankruptcy with foreclosure on the horizon, a bankruptcy court will issue an “automatic stay.” This integral part of bankruptcy cases will inform your creditors that they must immediately stop any attempts to collect debt. This will buy you some time as you decide whether to proceed with the foreclosure or fight it. To get a thorough understanding of your options, you should meet with a Dallas bankruptcy attorney.
Understanding Automatic Stay
In the event that your home is headed for a foreclosure sale, the sale will be put on hold while Chapter 7 is pending, usually for up to 4 months. Understand, however, that there are exceptions to this rule:
- If the lender files a successful motion to lift the automatic stay, the foreclosure sale could be postponed by 2 months instead of 4. If the lender is slow to pursue a motion to lift the stay, you will have more time before the sale as well.
- If a foreclosure notice has already been filed, an automatic stay may not buy you any extra time. Your attorney can explain in detail the intricacies of an automatic stay under Texas laws.
It can be very frustrating to face the prospect of foreclosure, but filing for Chapter 7 can help you stay afloat and maybe even allow you to breathe a bit easier.
Contacting a Dallas Bankruptcy Attorney
At Warren & Migliaccio, our goal is to protect you and your family so that you can take the necessary steps to plan proactively for your future. When financial circumstances outside of your control threaten your wellbeing, take control of your situation by contacting our
Dallas law firm. We’ll explain bankruptcy rules of procedure and guide you through the legal process so you can make informed decisions and choose the best course of action. If a personalized, teamwork-driven approach sounds like what you need for your case, call 1-888-584-9614 today to contact us. We’re here to help.