Legal Question in Bankruptcy in California

First, if your friend has an attorney representing her in the bankruptcy, she should discuss this with her attorney, as he or she will know the facts required to properly answer this question.

The answer to her question depends largely on where the bank was in the foreclosure process at the time of the filing of the bankruptcy. If she filed bankruptcy on the eve of foreclosure (or, for that matter, any time after the Notice of Trustee's Sale was published), then once they have Relief from Stay, they can go virtually straight to sale. She will, after the sale, be given a three day notice to quit the property. So, in essence, she has no time left whatsoever to remain in the property. If she stays after the three day notice, she will be evicted through a state court lawsuit.

If she did not file bankruptcy after the Notice of Trustee's Sale was published, then she will have to consult with an attorney and with the specific facts of what her remaining timing will be, as there are far too many variables and possible permutations to attempt to guess the answers to and discuss here.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence. As required by 11 U.S.C. �528, we must now disclose that, "We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. Assistance we provide with respect to Debt Relief may involve bankruptcy relief under the Bankruptcy Code."

It is important to realize that an Order granting a Motion for Relief from Stay simply means that the lender can continue with its rights (typically under State Law) to foreclose on its security without being in violation of the bankruptcy automatic stay. That means that once the bankruptcy stay is lifted, the lender must follow State Law. Typically, State Law requires a Notice of Default, then a 90 day waiting period, then a Notice of Sale. New laws enacted in 2008 place additional requirements upon lenders, such as contacting the borrower to review loan modification options and other similar requirements. An Order granting Relief from Stay does not excuse a lender from following these requirements.

Amir Aalam, Bankruptcy Attorney

You may find more useful information by visiting our Foreclosure web page located at http://www.sandiego-bankruptcylaw.com/Bankruptcy-Information/Foreclosure.aspx

For a wealth of useful information about your bankruptcy rights please visit our Bankruptcy Information Website at http://www.sandiego-bankruptcylaw.com

This communication is for general information purposes only. Nothing in this communication should be taken as legal advice for your individual situation. This communication does not create, and receipt or viewing of it does not create or constitute, an Attorney-Client relationship. To obtain legal advice for your individual situation it is recommended that you speak directly with an attorney to discuss your situation in detail.

Amir Aalam

Aalam Law Firm

(858) 461-0049