Facing the loss of your home due to foreclosure can be a terrifying experience. But there is hope for homeowners in Louisiana who are facing this predicament. One possible solution to consider is an emergency bankruptcy filing.
In this blog, we will explore the process of foreclosure, what an emergency bankruptcy filing is, and how it can help stop foreclosure. We will also discuss the importance of working with an experienced bankruptcy attorney, such as Diment & Associates, who can guide you through the process.
What Is Foreclosure?
Foreclosure is a legal process through which a lender, such as a bank or a mortgage company, takes possession of a property due to the borrower’s failure to make mortgage payments. In Louisiana, the foreclosure process involves a request by the bank to the court. Generally, there is no hearing or formal notice in advance of this request being granted. This means you won’t have your “day in court”, and you don’t get an opportunity to defend yourself to the judge. Once that request is granted, the property can be sold at a sheriff’s sale, and the proceeds are used to pay off the outstanding mortgage debt. Depending on the type of sale, you may still owe money to the bank. This is known as a deficiency balance.
What Is an Emergency Bankruptcy Filing?
An emergency bankruptcy filing, also known as a “deficient” or “bare-bones” filing, is a streamlined version of a standard bankruptcy petition. It allows you to file for bankruptcy protection quickly, with only the essential forms and documentation required to initiate the process. An emergency bankruptcy filing can be used in either Chapter 7 or Chapter 13 bankruptcy cases, depending on your specific financial circumstances and goals. These should be used only when necessary though, because it drastically increases the pressure on debtors for the first month.
Filing Bankruptcy To Stop Foreclosure
If you’re facing imminent foreclosure, an emergency bankruptcy filing can provide a temporary reprieve by stopping the foreclosure process in its tracks. When you file for bankruptcy, an “automatic stay” goes into effect, which prevents creditors from taking any collection actions against you, including foreclosure. This stay remains in effect until your bankruptcy case is resolved or the court lifts the stay.
In a Chapter 7 bankruptcy, the automatic stay will temporarily halt the foreclosure process, giving you some time to negotiate with your lender or find alternative housing. However, it’s important to note that Chapter 7 bankruptcy will not permanently stop foreclosure; if you cannot bring your mortgage current or work out a deal with your lender, the foreclosure process will eventually resume.
On the other hand, a Chapter 13 bankruptcy may provide a more lasting solution to stop foreclosure. In a Chapter 13 bankruptcy, you will propose a repayment plan to catch up on your past-due mortgage payments while continuing to make your current mortgage payments. If you successfully complete your repayment plan, you can avoid foreclosure altogether.
Working With an Attorney To File an Emergency Bankruptcy
If you’re considering an emergency bankruptcy filing to stop foreclosure, it’s crucial to work with an experienced bankruptcy attorney who can help you navigate the complex bankruptcy laws in Louisiana. At Diment & Associates, our bankruptcy lawyers have extensive experience representing both creditors and debtors, giving us a unique perspective on the bankruptcy process.
When you contact our Baton Rouge, Metairie, or Lafayette office, we will evaluate your financial situation, discuss your options, and help you determine if an emergency bankruptcy filing is the right course of action for you. We will assist you in preparing the necessary documentation and filing the required forms with the bankruptcy court. Our team will also work with you throughout your bankruptcy case, helping you address any issues that may arise and advocating for your interests at every step.
If you’re facing foreclosure in Louisiana, an emergency bankruptcy filing may be the lifeline you need to buy some time and potentially save your home. However, working with a knowledgeable bankruptcy attorney, like Diment & Associates, is essential to ensure the process goes smoothly and your rights are protected. By collaborating with our experienced bankruptcy lawyers in Baton Rouge, you can rest assured that you are making informed decisions and taking the right steps to protect your financial future.
If you’re ready to explore your options and stop foreclosure, don’t hesitate to reach out to Diment & Associates, a trusted Baton Rouge firm, for the guidance and support you need.
