Justia Lawyer Rating
Super Lawyers

Stopping Foreclosure Through Bankruptcy

How can a Chapter 13 Bankruptcy Stop your Foreclosure?

If you want to save your Jacksonville, Florida home, a Chapter 13 Bankruptcy might be able to help you. A Chapter 13 Bankruptcy in Florida can assist you in bringing your mortgage payments current in two different ways.

Making Payments Over 3-5 Years may Save Your Home

The first and traditional way a Chapter 13 Bankruptcy in Jacksonville can help you bring your mortgage payments current is through a repayment plan, or what is referred to as a Chapter 13 Plan in bankruptcy terms. The Chapter 13 Plan lasts between three to five years depending on your yearly income which is based on your household size. However, if you already are unable to afford your regular monthly mortgage payment along with all of your other monthly expenses, bringing your mortgage payments current through a Chapter 13 Plan can be extremely difficult. That is why the Jacksonville Bankruptcy Court came up with another option which many of the top Jacksonville bankruptcy lawyers use that may be better for homeowners in the Jacksonville area.

Using the Mortgage Modifications in Bankruptcy to Reduce Your Payments

The second and relatively more recent option available to homeowners through a Chapter 13 Bankruptcy in Jacksonville is participation in Mortgage Modification Mediation. Mortgage Modification Mediation is a process where you apply for a Loan Modification while in bankruptcy. After your Chapter 13 Bankruptcy has been filed, your Jacksonville Bankruptcy Attorney files a Motion for Mortgage Modification Mediation with the Bankruptcy Court. After, the Bankruptcy Judge will enter a Court Order ordering your mortgage holder to participate in mediation with you. The hope of Mortgage Modification Mediation is to lower your monthly mortgage payment so that it is more affordable for you.

Why should I Apply for Loan Modification Through a Chapter 13 Bankruptcy?

In Jacksonville, Florida there are some considerable advantages to applying for a Loan Modification through a Chapter 13 Bankruptcy. First and foremost reason is time. If you run out of time in your foreclosure case, meaning a Judgement has already been entered, and a Sale Date has been set, then a Chapter 13 Bankruptcy can give you additional time to apply for a Loan Modification that you otherwise would not have.

This extra time can help you to apply for a Loan Modification because a Jacksonville Bankruptcy Court issues something called the Automatic Stay as soon as a Chapter 13 Bankruptcy has been filed. This Automatic Stay blocks creditors from trying to collect particular types of debts from you. The sale of a home from a Foreclosure Judgment is one of the types of debts and debt collection practices that is stopped while a bankruptcy is pending.

Another great advantage to applying for a Loan Modification through a Chapter 13 Bankruptcy is that it can force your mortgage holder to review your Loan Modification Packet through Mortgage Modification Medication. A lot of clients experience great difficulty applying for a Loan Modification outside of Bankruptcy. Their mortgage holders seem always to lose the documents mailed or faxed to them, or they seem to constantly ask for the same but updated documents over and over again. Mortgage Modification Mediation, although there is no guarantee you will be approved for a Loan Modification, at least your mortgage holder will complete a Loan Modification Review if you provide them with a completed Loan Modification Packet.

What if I do not Want my Home, but Just Need More Time?

However, if your goal is to walk away from your Jacksonville home instead of trying to bring your mortgage payments up to date so that you can keep your home, a Chapter 7 Bankruptcy might be the best option for you. Just like when a Chapter 13 Bankruptcy is filed, an Automatic Stay is also put in place as soon as a Chapter 7 Bankruptcy has been filed.

In contrast to a Chapter 13 Bankruptcy, a Chapter 7 Bankruptcy is a strict liquidation of your assets and relieves you from the full liability of almost every type of debt. A mortgage is just one type of debt that can be wiped out by filing a Chapter 7 Bankruptcy in Jacksonville, Florida. But, not everyone can file a Chapter 7 Bankruptcy because there are strict income limitations. Luckily, if your only option is a Chapter 13 Bankruptcy due to your income, you can still walk away from your mortgage debt after completing a Chater 13 Plan.

If you live in Jacksonville, Florida or one of the surrounding cities or counties and need to stop your Foreclosure Sale Date, please contact an experienced Jacksonville Bankruptcy Attorney today. Not only are the attorneys at the Law Office of David M. Goldman, PLLC experienced in Bankruptcy Law; they are also experienced Foreclosure Defense Attorneys. By speaking with an attorney experienced in both Bankruptcy Law and Foreclosure Defense, you can better determine what your best option is when facing a Foreclosure Sale Date. Contact the Law Office of David M. Goldman, PLLC to stop your approaching Foreclosure Sale Date.

Client Reviews
"As a real estate agent, I have been involved with many property transactions where I needed a probate attorney to help facilitate the transaction. I have used the services of Mr. Goldman and his staff over the last several years and continue to use them on a regular basis. His office has been able to navigate the court system and help estates sell their property quickly and efficiently..." Michael Starling
"I've had Mr. Goldman do my entire estate planning as well as my gun trust. I highly recommend him and his firm. If you're planning a gun trust, trust no one else Mr. Goldman is one of if not the best versed on this topic." Howard
“Great service is an understatement. We bought several properties that Mr. Goldman handled for his clients. The communication and explanation of everything was terrific. I would definitely recommend him for all of your real estate needs.” Kassandra
“After struggling with 2 probate cases prior to hiring attorney Goldman I was extremely apprehensive during the hiring phase. Not only did Attorney Goldman assure me they could take care of this his office was wonderful. Jennifer was assigned to my case and she was wonderful and were able to guide another probate case I had saving me additional time and frustration. Highly recommend this office.” Debbie