Handling Foreclosure in San Antonio through Bankruptcy
In some cases, bankruptcy can be used to prevent foreclosure. Other times, it may not. If you are thinking about bankruptcy and fear your home is in danger of foreclosure, call a local San Antonio bankruptcy lawyer at our firm now for assistance.
What if You Receive a Foreclosure Notice?
If you have received a foreclosure Summons Complaint alerting you that your house is in foreclosure, you may be able to prevent it if you act swiftly. Although you are not allowed to restructure the terms of the mortgage, you may ask the bank for leniency for time to catch up on your back payments, also known as “arrears.”
Most banks prefer not to foreclose on your home — especially in today’s economy — but the bank needs a reason to believe you will make your mortgage payments. If all your other debts are discharged or consolidated through bankruptcy in San Antonio, then the bank has a reason to believe you will be able to make the payments.
Foreclosure in Chapter 7 Bankruptcy
In Chapter 7 consumer bankruptcy, the majority of your unsecured debts are forgiven. A mortgage, however, is a secured debt. While the underlying debt on a home or real property is discharged or forgiven the lien remains on the property and can still be foreclosed by the lender or lending institution. Foreclosure permits the bank or lending institution to take back title to the property. If the home or real property is surrendered in a chapter 7 bankruptcy all your existing debt owed on the mortgage will be discharged even if the value of the house is less than the value of the debt.
Foreclosure in Chapter 13 Bankruptcy
If you are in foreclosure, filing for Chapter 13 bankruptcy in San Antonio may allow you to catch up on your back payments and reinstate your mortgage. Even if you have already been served a Summons Complaint, you can file for Chapter 13 bankruptcy to prevent foreclosure at any time before the bank’s auction to sell your house takes place.
In these times more than any other since the Great Depression, Americans are being turned out of their residences. Many foreclosures are the result of economic struggles and predatory lending — not fiscal irresponsibility. If you are facing foreclosure and bankruptcy in San Antonio, our local bankruptcy attorney in San Antonio can help you through it.
To learn more about bankruptcy in the San Antonio area, you can schedule an appointment for a free initial consultation with one of the members of our legal team. Just call (210) 807-4252 or contact our offices online.