• Foreclosure Lawyer in Memphis

    Will a bankruptcy stop a foreclosure?

    Filing for bankruptcy can sometimes be the best way for debtors to retain their property.  Some of the advantages of filing bankruptcy include an automatic stay, which requires your creditor to cease debt collection immediately.  An automatic stay allows the debtor to stall foreclosure for at least three months without the approval of the creditor. 

    There are some exceptions to automatic stay, including a motion to lift the stay.  It is sometimes possible for the creditor to proceed with the sale of your property by filing a motion to lift the stay with the court.  If this happens, you might not have the whole three to four months that filing bankruptcy usually provides.

    Chapter 7 bankruptcy in Tennessee foreclosures

    While a Chapter 7 bankruptcy offers many benefits, it cannot cancel your foreclosure.  The advantages of Chapter 7 include the following:

    • Saving money.  You may live in your home for free for some of the time while your bankruptcy is pending.
    • Cancelling debt.  Chapter 7 cancels all debt related to your home, including the mortgage and any home equity loans.

    A Chapter 7 bankruptcy can also cancel tax liability for specific types of property loans.  Sometimes, you can be held liable for taxes on the losses your creditor incurs as a result of your default.  If the loan is not a mortgage, or if the mortgage or home equity loan is secured by property that is not your primary home, you might be liable for the taxes your creditor incurs after the foreclosure sale.  A Chapter 7 bankruptcy exempts you from tax liability in these situations.

    Filing Chapter 13 bankruptcy

    For some people, the only way to keep their home is to file a Chapter 13 bankruptcy, as it can prevent a lender from foreclosing on a debtor for years at a time.  Chapter 13 bankruptcy outlines a plan for how the debtor can pay the creditor over the course of three to five years.  If you make all the payments through the end of the repayment plan, you can keep your property.

    Call 1-901-620-6347 for a Memphis foreclosure lawyer.

    The Law Office of Ben G. Sissman represents clients from Memphis and surrounding counties north to the border: Shelby, Fayette, Tipton, Haywood, Lauderdale, Crockett, Dyer, Obion, Lake, and Gibson.  For effective legal guidance, contact a highly qualified Memphis foreclosure attorney today.

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