Can Bankruptcy Stop a Foreclosure on a Home in New Jersey?

Foreclosure is a legal process where a lender tries to recover the amount of money they are owed by taking ownership of a mortgaged home and selling it. Losing a home can be an extremely distressing experience for anyone. Thankfully, there are ways to avoid having your home taken from you.

You may be able to stop foreclosure on your home in New Jersey by filing for bankruptcy. There are two general types of bankruptcy that can be filed by debtors. Guidance from our attorneys can be highly valuable when determining which form of bankruptcy is right for you.

If you need to file for bankruptcy in order to prevent foreclosure on your home, seek assistance from our experienced New Jersey bankruptcy lawyers at Young, Marr, Mallis & Associates by dialing (609) 755-3115 today.

Bankruptcy Can Prevent a Foreclosure on Your Home in New Jersey

By filing for bankruptcy, you may prevent a foreclosure on your home in New Jersey. During your free case review, our legal team can thoroughly explain what will happen when you file for either of the following types of bankruptcy:

Chapter 7 Bankruptcy

This type of bankruptcy is a potential option for those who do not maintain steady employment or do not produce enough income to pay off their debts. When you file for Chapter 7 bankruptcy, be prepared for someone else will take ownership of valuable items that you own in order to sell them. The proceeds will be used to clear debts with your creditors.

By filing for Chapter 7 bankruptcy, your creditors will be temporarily stopped from collecting on most of your debts. This can afford you time to catch up on mortgage payments or submit a mortgage modification to a loan company. If you suspect that you need to file for Chapter 7 bankruptcy, contact our bankruptcy lawyers for help initiating the process.

Chapter 13 Bankruptcy

This is another type of bankruptcy that you may file to prevent your home from being foreclosed on in New Jersey. Chapter 13 bankruptcy is intended for those who maintain steady income but are still unable to keep up with the debts they owe. Rather than having all of your debt absolved, filing for this form of bankruptcy will simply afford you time to create a repayment plan. This plan has to be approved by your creditors and the court.

As long as you make payments on-time according to your repayment plan, the mortgage company cannot foreclose on your home. Our experienced Cherry Hill bankruptcy attorneys can help you file for Chapter 13 bankruptcy and form a reasonable plan for repayment.

Can Anyone File for Bankruptcy to Stop Home Foreclosure in New Jersey?

There are certain conditions that must be met in order to successfully file for bankruptcy in New Jersey. First, if you have previously filed for bankruptcy, you must ensure that sufficient time has passed for you to file again. The amount of time you have to wait can vary depending on the type of bankruptcy you filed in the past and the type you wish to file.

Additionally, to qualify for Chapter 7 bankruptcy, your family’s gross income has to be less than the median income for other families of the same size in New Jersey. During a free evaluation of your case, our bankruptcy attorneys can help you determine if you meet this requirement.

Further, to qualify for Chapter 13 bankruptcy, there are several conditions that must be adhered to. For instance, there are maximum amounts of secured and unsecured debts that you can have. Also, you will have to show that you filed your federal and state income taxes for each of the previous 4 years. Thankfully, our legal team can also help determine if you are able to file for Chapter 13 bankruptcy.

When Will Your Home Be Foreclosed on in New Jersey?

If you fail to keep up with your mortgage payments, your home can be foreclosed on. Foreclosure is a process where the party you owe money to will take ownership of your home and sell it in order to satisfy your debt. According to federal laws protecting homeowners, your lender is prevented from initiating the foreclosure process until you have been delinquent for a minimum of 120 days.

Does Your Lender Have to Let You Know that Your Home is Being Foreclosed on in New Jersey?

Before homes are foreclosed on, lenders have to provide borrowers with notice of their intent to initiate such processes. This notice must be provided through registered or certified mail with return receipts requested. You should be notified of a foreclosure on your home at least 30 days before the formal foreclosure complaint is filed, but less than 180 days in advance. This notice should provide a great deal of information pertaining to your case. For example, all of the following has to be included in a foreclosure notice:

  • A description of your lender’s interest in your property
  • A reasoning behind the foreclosure such as missed mortgage payments
  • An outline of what you must pay to cure your debts
  • Information pertaining to your right to default

Still, there are copious amounts of additional information that must be included in your foreclosure notice. Our experienced East Brunswick, NJ bankruptcy lawyers can help determine if you were served proper notice regarding a foreclosure on your home.

Will Filing for Bankruptcy Eliminate Debts Other Than Mortgage Payments in New Jersey?

In addition to preventing foreclosure on your home, filing for bankruptcy can also alleviate your financial burden as it pertains to many other debts. For example, filing for bankruptcy can eliminate your obligation to pay overdue credit card balances, doctor’s bills, utility payments, and personal loans.

Still, there are certain debts that cannot be wiped away. For instance, your domestic support obligations and tax debt cannot be absolved through bankruptcy. Additionally, it is difficult to eliminate debt for student loans. Our experienced Egg Harbor, NJ bankruptcy lawyers can help explain whether certain debts you owe are dischargeable or not.

If You Need to File Bankruptcy to Stop a Foreclosure on Your Home in New Jersey, Contact Our Law Firm for Help

If you wish to file for bankruptcy to prevent foreclosure on your house, get help from our experienced Mount Holly bankruptcy lawyers at Young, Marr, Mallis & Associates today by calling (609) 755-3115.

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