Can an Emergency Bankruptcy Filing Stop Home Mortgage Foreclosures in Pennsylvania?

If your home is facing a foreclosure, filing for emergency bankruptcy could be your only option. Emergency bankruptcies must be handled with caution because of the potential for providing the court and creditors incorrect information. However, if you do not have much time to save your home from foreclosure, an emergency bankruptcy could be worth it. If you or a family member would like assistance filing for an emergency bankruptcy, contact an experienced Philadelphia bankruptcy lawyer. At Young, Marr, Mallis & Associates, our bankruptcy lawyers are dedicated to helping you manage your bankruptcy filing. Our firm is here to explain whether an emergency bankruptcy can stop a home mortgage foreclosure.

How Emergency Bankruptcies Work in Pennsylvania

Facing the foreclosure of your home can be a stressful ordeal. You may have put years of time into managing and renovating your home, and the possibility that it will be taken from you can be inconceivable. However, choosing to file for bankruptcy could help you avoid foreclosure and help you manage other debts that have become insurmountable.

What is Your Foreclosure Date?

Before considering an emergency bankruptcy, you need to be sure if it is the best option for you. One important piece of information you should note before choosing to file for an emergency bankruptcy is when your mortgage lender plans to foreclose on your property.

Before foreclosure proceedings can be initiated, the mortgage lender must issue you a notice of default. After the notice of default was received by the homeowner, the mortgage lender must provide the homeowner with the foreclosure date for your home after waiting for the requisite statutory period. Once you are aware of the date of the foreclosure sale, you can determine whether you can choose to file an emergency bankruptcy petition.

Receiving an Automatic Stay

An emergency bankruptcy is when the petitioner does not have enough time to fill out the entire bankruptcy forms completely, so the petitioner files their bankruptcy with vital information still missing. This emergency filing would act to delay the foreclosure by providing the petitioner with an automatic stay.

When a person files for bankruptcy, whether they filed an emergency petition or not, they will be granted an automatic stay. An automatic stay prevents creditors from contacting the debtor to collect money until the bankruptcy proceedings have been completed; this includes stopping a foreclosure proceeding.

It is important to note that when a debtor files an emergency bankruptcy, they only have 14 days after the initial filing date to complete the rest of the forms to file for bankruptcy successfully. This can be an issue if you have difficulty gathering the financial information you need to complete your application. Additionally, the debtor may also have to take a credit counseling course before the emergency bankruptcy can be filed.

If the debtor makes any mistakes that misrepresent their financial situation, this can be devastating for the debtor. Not only could they lose their home after their filing is rejected. They could be accused of committing bankruptcy fraud in order to save their home.

Chapter 7 or Chapter 13 Bankruptcy

When filing for bankruptcy, you still must select which chapter you file your claim under. The most common types of bankruptcy chosen by individual filers are Chapter 7 bankruptcy or Chapter 13 bankruptcy.

Chapter 7 bankruptcy allows a debtor to sell their property to pay off any debtors that they cannot afford to pay. Once the debtor’s assets are sold, the money from the sale will be provided to the creditors by the bankruptcy representative. If a Chapter 7 bankruptcy is successful, the debtor will be able to discharge multiple types of debt while also saving their home from foreclosure.

Chapter 13 bankruptcy allows a debtor to reorganize their debt into a form that is easier to pay off. The debtor must agree to a repayment plan with creditors to repay their debt within a five-year or three-year payment plan. The benefit of Chapter 13 is that it allows a debtor to avoid foreclosure, and it lowers the amount of money they owe to creditors.

If you need assistance determining which type of bankruptcy is appropriate for your situation, you should speak with an attorney immediately. Waiting too long could mean the difference between saving or losing your home.

Contact an Experienced Philadelphia Bankruptcy Attorney Today About Your Home Foreclosure

If you require legal assistance handling your bankruptcy filing, contact an experienced Montgomery County bankruptcy attorney. The legal team at Young, Marr, Mallis & Associates possess decades of combined legal experience, and we would be honored to help you with your bankruptcy case. To schedule a free legal consultation to discuss your case, contact Young, Marr, Mallis & Associates at (215) 607-2715, or contact us online.