Tag Archives: forclosure

Foreclosure Bankruptcy Laws

Foreclosure Bankruptcy LawsForeclosure Bankruptcy Laws – Foreclosures are initially stayed by a bankruptcy. But, the stay won’t apply if you filed another bankruptcy case within the previous two years and the court, in that proceeding, lifted the stay and allowed the lender to proceed with the foreclosure. Sadly, the law does not allow you to prevent a foreclosure by filing serial bankruptcies.

Even if this is your first bankruptcy, filing doesn’t stop time periods associated with the state’s foreclosure procedures from “running”. For example, once a homeowner receives advance notice of foreclosure, the home may not be sold until the notice period has ended. Filing bankruptcy won’t stop the notice period from elapsing. But the sale itself can’t happen while you are in bankruptcy unless the foreclosing party gets permission form the bankruptcy judge by filing a Motion to Lift Stay.

Even in circumstances where the stay would otherwise apply, you can lose its protection through your own actions. The stay may not protect you from collection efforts if 1) you had a bankruptcy case pending within the year before you file your current case, and the court refuses your request to allow the stay to kick in, or you don’t meet the deadlines set out in the bankruptcy code for dealing with property that serves as collateral for a secured debt.

If you are facing the threat of the foreclosure of your home you need to act quickly if you would like to use the Foreclosure Bankruptcy Laws to help you protect your home. An attorney can help you decide if foreclosure bankruptcy laws can help by discussing all your options.

For more information about the Foreclosure Bankruptcy Laws in GA – contact Cynthia Remboldt, at the Remboldt Law Firm at 404-348-4081. FREE consultations can be scheduled by calling 404-348-4081.  Evening and Weekend hours are available to meet with an attorney.  If bankruptcy turns out to be the best way to move forward considering your alternatives, goals and financial challenges, payment plans are available if you need them.

 

Unauthorized Bankruptcy Mortgage Refinancing.

Unauthorized Bankruptcy Mortgage RefinancingConsidering an Unauthorized Bankruptcy Mortgage Refinancing? If you file a bankruptcy, you must get the bankruptcy court’s permission to refinance your mortgage (or enter into any new debts) while your assets are still part of the bankruptcy estate, controlled by the Court and the Trustee to avoid an unauthorized bankruptcy mortgage refinancing.

Here’s some court cases that explain the issues with the unauthorized bankruptcy mortgage refinancing.  The two courts involved are the First Circuit BAP and the Eighth Circuit BAP both addressed unauthorized post-petition refinancing.

In In re Marrero, the lender on the two mortgages obtained stay relief in order to foreclose because the debtor was behind on the mortgages. The Debtor, in order to avert the foreclosure, refinanced the indebtedness without notifying or obtaining authority from the Trustee or the Court. In the process, the lender cancelled the two earlier mortgages, and replaced them with a single new mortgage in its favor.

The Trustee moved the court to avoid the refinanced mortgages.  Affirming the Bankruptcy Court, the BAP held that the Trustee could avoid the new mortgage as an unauthorized post-petition transfer under S549(a). The Court found that the Mortgage Company could not use the good-faith defense of S549(c), since the lender had known about the bankruptcy case. Further, once the new mortgage was avoided by the Court, the property became unencumbered, because the prior mortgages had been released. The Trustee could, therefore, sell the property.

For more information about Bankruptcy and the unauthorized bankruptcy mortgage refinancing  – contact Cynthia Remboldt, at the Remboldt Law Firm at 404-348-4081. FREE consultations can be scheduled by calling 404-348-4081.  Evening and Weekend hours are available to meet with an attorney.  If bankruptcy turns out to be the best way to move forward considering your alternatives, goals and financial challenges, payment plans are available if you need them.