In some cases, filing bankruptcy in Stillwater, Oklahoma can stop the bank from foreclosing on your home.
The alarming rise in the rate of foreclosures across the nation has been a familiar topic in the news over the last several years. Many families who have never had any financial difficulties are now struggling to keep their homes. For a large percentage of them, losing their homes through foreclosure will become an unavoidable reality.
But in other cases, families who are fearful of losing their homes to foreclosure can find relief through federal bankruptcy laws. Read further to find out how filing bankruptcy in Stillwater can stop a foreclosure.
Foreclosure in Stillwater
Foreclosure usually doesn’t happen until you are several months behind in your mortgage payments. At this time, the lender will notify you that you are in default and allow you time to get caught up with your payments. If you do not get caught up during the time allotted, the lender will then notify you of its intention to offer your home for sale at public auction, typically within 30 days.
If by that time you still haven’t resolved the issue, your home will be sold and you will lose the chance to redeem it, unless your state allows a “redemption period” following the sale. In Oklahoma, it takes 15 days for the sale to be confirmed by the courts. During this time, you can redeem your home by paying off the entire balance of your mortgage.
How Filing Bankruptcy in Stillwater Can Help
Often, lenders are willing to make arrangements with you to get out of default and keep your home. But when this is not the case, you will be left with few choices. Filing bankruptcy in Stillwater may be the best option available.
The two main types of bankruptcy proceedings are Chapter 7 and Chapter 13. Under each, an “automatic stay” goes into effect as soon as you file, and the foreclosure process is put on hold until the end of your bankruptcy or until the stay is lifted by court order.
Chapter 7 Bankruptcy
Filing Chapter 7 will usually give you about four months before the foreclosure process resumes.
Ultimately, Chapter 7 will not stop foreclosure, but the delay may give you time to arrange for its eventuality and prepare to move on.
Also, during the bankruptcy period, you will be allowed to stay in the home without making any payments, which can give you the chance to save money to find someplace else for you and your family to live.
Filing Chapter 13 Can Help You Keep Your Home
Chapter 13 bankruptcy can actually stop a foreclosure, if you file early enough. Under Chapter 13, you are allowed to propose a plan to reorganize your debt and get caught up with your loan payments. If you can achieve this within the allotted time (three to five years), you will be able to avoid foreclosure and keep your home.
However, you must first qualify for Chapter 13 bankruptcy in Stillwater and have the court approve your reorganization plan. This normally means that you must have enough income left over to make steady payments after first satisfying certain other debts — such as child support, alimony, and taxes — that take priority over your mortgage in the eyes of the court.
Free Consultation: Stillwater Bankruptcy Attorney
Bankruptcy in Stillwater can be used to help you get caught up with your mortgage payments. Call us today to find out more about how filing bankruptcy in Stillwater can help you save your home.
Wirth Law Office – Stillwater offers free, no-obligation phone consultations. Call 405-673-1600 or toll free at 1-888-Wirth-Law (1-888-947-8452) today.
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