Can the automatic stay help protect you from foreclosure in Las Vegas? And what are some of the advantages to filing for bankruptcy if you are facing foreclosure?
The automatic stay can indeed stop foreclosure. In fact, once you file for bankruptcy, the automatic stay stops any attempt by a creditor to seek repayment of or collect on any debts from the debtor. However, it’s also important to bear in mind that a home lender can (and usually will) seek to have the automatic stay lifted so they can continue the foreclosure process.
Nonetheless, there are still a number of advantages to filing for bankruptcy and relying on the automatic stay to stop the foreclosure process. Here are 5 ways the automatic stay can help you if you’re facing foreclosure:
1. Give you extra time (a month or two, or more) to find a new place to live and get your life organized.
2. Leave you with additional cash since you won’t have to pay the mortgage for the month or two (or more) until the automatic stay is lifted. This is cash that could be used for other important living expenses.
3. Contest the mortgage. It’s now widely known that the banks have been extremely sloppy in keeping good records of mortgages. Just because a bank says they own the mortgage doesn’t mean they do. Often the records are disorganize, or the ownership chain is difficult to verify, because the mortgage has been bought and sold and transferred so many times that it’s difficult to tell exactly who the rightful owner is. The extra time you get from the automatic stay may be helpful in exploiting these mistakes made by the banks.
4. Filing for bankruptcy will reduce your unsecured debts, which in turn may leave you with the cash you need to make payments on your mortgage so you can keep your home.
5. Filing for bankruptcy will provide tax advantages with respect to your mortgage since the debt related to your mortgage will be wiped clean, even though the lien on your home stays in effect.
If you’re worried about foreclosure and have questions about bankruptcy, please feel free to contact an experienced Freedom Law Firm Las Vegas bankruptcy attorney at 702-903-1354 for a free initial consultation.