Legal Question in Real Estate Law in Missouri
My wife and I are behind on house payments and the mortgage company is pushing foreclosure. We have asked them to do a refinance or a loan restructure but they refuse to do so. They have told us to have a certain amount of money in money orders or cashier checks to them by the 23rd of October but we can't do it. I have been told that if we file chapter 7 that they cannot take our house away and that will stop any foreclosure attempt. Is that true? Also, if I file chapter 7 can I keep our cars until the bankrupcy goes through?
Thank you
1 Answer from Attorneys
When a party files a chapter 7 bankruptcy Petition, there is an automatic Stay (stoppage) of any pending litigation or aother action to alter the property of the filer. A mortgage company usually has the debt (note) secured by the mortgage lien on the property. They can ask the bankruptcy court to lift the stay as to their claim. Unless the debtor makes use of one of the federal loan reforming or modification programs, bankruptcy courts almost always grant the request to lift the stay. If you owe no money on the car. you may keep it as it is outside the bankruptcy estate. If a married copule is filing m they may be able to keep two vehicles. If you owe money, you and your lender may be able to work out a deal. You may be able to reaffirm the car loan, and keep paying and driving as you did before. Your bankruptcy attorney will be able to explain these matters in more detail. It sounds like you may need to get your bk petition on file by October 23rd, so I suggest you not delay in meeting with a bk attorney in your area. Many offer free initial consultation. A few can meet with you the same day you contact them.
Good luck
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