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Q
How does bankruptcy affect a home foreclosure?

A

North Carolina bankruptcy helpForeclosure in North Carolina and any part of the country is generally not a lightning speed process. Plus, homeowners might have options to delay foreclosure. Bankruptcy is also not an overnight procedure. First, bankruptcy applicants must complete mandatory credit counseling followed by additional steps before proceedings begin.

Two factors can affect whether or not bankruptcy can help prevent or stop foreclosure on a home. One is time, the other is the type of bankruptcy the applicant files. Filing Chapter 7 or Chapter 13 bankruptcy places what is called an 'automatic stay,' a term that means most creditors must suspend their collection practices. How far along in the foreclosure process is the potential bankruptcy applicant? Would there be sufficient time to begin a lengthy bankruptcy application? The answers to these questions are best discussed during a consultation with a bankruptcy attorney who can review your unique circumstances and advise how state and federal bankruptcy law applies to your particular case. 

Sometimes homeowners are offered foreclosure alternatives from their bank/lender. Short sales, forbearance, and other options could be available to the homeowner.

Contact our bankruptcy attorneys in Raleigh to schedule a complimentary consultation. We will discuss your case and explain complicated legislation in simple terms you can understand so that you can confidently decide your next step. Bankruptcy attorney Brent Adams explains more about the details you need for starting the process in the video above.