a home in forclosure in GA? The couple I am talking to say they don't want to sign anything since the house will be saved by bankrupcy. The home is in forclosure. Is this not the case?
The automatic stay precludes any action to collect a debt or enforce a judgment against the debtor, see 11 U.S.C. §§ 362(a)(2) & 362(a)(6), to create, enforce or perfect a lien against the debtor’s property, 11 U.S.C. §§ 362(a)(4) & 362(a)(5), to move to obtain possession of, or control over, the debtor’s property, see 11 U.S.C. § 362(a)(3), or to set off a debt owing to the debtor, see 11 U.S.C. § 362(a)(7). Because this is a federal statute, it applies to ALL states, regardless of what their own state laws might provide. Hope this helps.[ Edited by 183934 on Date 03/07/2004 ]
The automatic stay will put the lenders at bay BUT the homeowners will have to either affirm or reject the loan(debt) in the bankruptcy. If they reject OR affirm but don't keep the terms agreed to, their SOL. As soon as the stay is lifted all secured creditors are free to go after the asset they have interest in if satisfactory arrangements arent made and adhered to.
If the underlying financial problem(s) have been resolved, bankruptcy can save a home from foreclosure.
Most folks who seek a bankruptcy repayment plan to save the home, fail.
I'm not 100% sure on this, but I believe Chapter 13 is a forced forbearance agreement.
Ryan J. Schnabel
The automatic stay precludes any action to collect a debt or enforce a judgment against the debtor, see 11 U.S.C. §§ 362(a)(2) & 362(a)(6), to create, enforce or perfect a lien against the debtor’s property, 11 U.S.C. §§ 362(a)(4) & 362(a)(5), to move to obtain possession of, or control over, the debtor’s property, see 11 U.S.C. § 362(a)(3), or to set off a debt owing to the debtor, see 11 U.S.C. § 362(a)(7). Because this is a federal statute, it applies to ALL states, regardless of what their own state laws might provide. Hope this helps.[ Edited by 183934 on Date 03/07/2004 ]
The automatic stay will put the lenders at bay BUT the homeowners will have to either affirm or reject the loan(debt) in the bankruptcy. If they reject OR affirm but don't keep the terms agreed to, their SOL. As soon as the stay is lifted all secured creditors are free to go after the asset they have interest in if satisfactory arrangements arent made and adhered to.