Before you resort to filing from bankruptcy as a result of the overwhelming pressure from creditors, you may have gone through copious stressful repercussions due to loss of financial stability. This may include harassing calls from liens or debt collectors. However, the most troubling is the prospect of a foreclosure Orange Park, FL, on your home.
A bankruptcy lawyer can stop the process, allowing you to engage alternative measures of solving your overwhelming debt problems and bad credit score. Filing for bankruptcy offers you the opportunity to have a fresh start financially; however, it is worth noting that this action will stay on your record for ten years. A bankruptcy lawyer can walk a debtor through the legal process and keep him apprised on the federal and state laws that pertain to the debtor’s case.
Foreclosure Orange Park, FL, occurs when you default on mortgage payments and the original lender of the property tries to repossess the house. There might also be other property-related debts that affect this process, such as unpaid contractors’ bills, overdue property taxes, or standard neighborhood homeowners’ association dues.
There are essentially two types of foreclosures, both of which are allowed in a majority of states: Judicial foreclosures and power of sale. A judicial foreclosure one occurs when the courts are involved in the process. Lenders will typically see their debtors in court in order that they may settle the dispute. However, in the event that there is a specific clause in the property deed regarding power of sale, the second type of foreclosures occurs. In this case, the property can be sold without the intervention of the federal court.
In the event that the foreclosure is not stopped by a bankruptcy lawyer or through payment of the money debts, the creditor may sell the property – sometimes through public home auctions – and collect his balance of the debt. On the other hand, you can hire a bankruptcy lawyer who will help you file for bankruptcy in a manner in which your home will not be foreclosed. Filing for bankruptcy temporarily freezes the process, allowing you the chance to reclaim your home.
If you choose to do so, the bankruptcy lawyer can file for a Chapter 7 or Chapter 13 bankruptcy that will place an automatic stay on the pending foreclosure, in addition to putting an end to the harassment by creditors and debt collectors. Unless the creditor gets the permission of the court to proceed, thus lifting the stay, the status of the house remains at a halt until you and the creditor come to a satisfactory settlement.
In conclusion, whenever if a lender attempts to foreclose your home, you should immediately contact a good bankruptcy lawyer in order that you may protect your most important asset: your home.