Bankruptcy
Can someone please tell me if Bankruptcy STOPS foreclosure in Florida? I was told that it can delay it, but never stop it.
Then, I start advertsing this and some attorney calls me and says that I'm deceptive and all this junk because bankruptcy does stop the process and gives the owner 5 years to make up what is owed.
I need professional advice, PLEASE! :-o
Honestly I'd ask an attorney what the deal is in your state. I believe that Chapter 13 is a forced forebearance agreement with the bank and Chapter 7 is liquidating assets. I could be totally wrong here but my point here is that bankruptcy can STALL the foreclosure process, but it's kind of like delaying the inevitable.
Sorry I can't answer your question better - I'm not an attorney in Florida.
Ryan J. Schnabel
Chapter 7 is a liquidation. Borrowers can surrender the property and discharge the mortgages, or keep the property and reaffirm the debt if they are current or can get current (subject to state's homestead exemption laws - where the property might be liquidated to pay creditors...)
[ Edited by Utah_Bkatty on Date 03/28/2004 ]
Chapter 13 allows debtors to "catch-up" ot cure defaults over 36-60 months - but must remain current during the chapter 13 plan.
both can stall foreclosure, only one can acutally stop it, if the debtor is successful in the reorganization plan.
hope that all makes sense.
good luck!
You can do a quick search online for bankruptcy laws in Florida. Here is one of the many websites I found with bankruptcy law information...
Florida Non-Dischargeable Debts states:
"The following debts cannot be discharged in either Chapter 7 or Chapter 13 Florida bankruptcies. If you file for Chapter 7, you will still be responsible for repaying these debts after your discharge. If you file for Chapter 13, these debts will have to be paid in full in your plan. If they are not, the balance will remain at the end of your case. Remember that you will also have to continue to pay secured debts (such as a house or car payment) if you to intend to keep the secured property. "
Yes, it is true that you can stop foreclosure...if they can meet the bankruptcy law requirements to keep the property. Usually they will have to be able to make payments on the mortgage and keep it current. I would say 8 times out of 10, they are not able to stay current and will end up losing their home in foreclosure anyways. Technically the attorney is right, but in reality most people cannot meet the bankruptcy requirements if they're trying to eliminate all their debts. Just my opinion, maybe you should reword your advertisement...
Tanya
I am sorry to sound stuffy, all the advice you have received is excellent. But remember Florida, has been to some degree infused with a touch of French and Spanish laws. It is a bit on the edge and is rather special. Ergo.
Please see an attorney who practices in the BK courts of Florida. A small consulting fee is well worth it. There may be a few little ground rules that could really work for you.
Please see an attorney.
Lucius