An imminent foreclosure of your home can keep you awake all night. If you have been unable to bring your loan current or modify your loan, you may feel as though you are out of options. Chapter 13 lets you stop foreclosure of your home and bring your loan current over time. Now there are a lot of Chapter 13 cases filed by unscrupulous attorneys solely with the intent of delaying a foreclosure. This type of abusive conduct could subject you and your lawyer to sanctions. This is especially true if you are filing your case in the San Diego bankruptcy court. The courts do not exist merely to help borrowers delay foreclosure sales. The courts exist to help consumer borrowers obtain debt relief through Chapter 7 liquidation or to reorganize their debts in a Chapter 13 repayment proceeding. So you must be filing in good faith.
If you have a good faith intention of reorganizing your debts in a repayment proceeding, such as Chapter 13, then you can file an emergency bankruptcy in San Diego in order to stop foreclosure of your home or other property and repay your past due payments through a court approved Chapter 13 repayment plan. But if you don’t have the intention of pursuing the Chapter 13 case to completion, and are filing your Chapter 13 case simply to delay the foreclosure process, you and your lawyer could get conceivably sanctioned for abusing the court system.
Sanctions can range from a monetary fine, which is less common, to a bar against refiling your bankruptcy case, which is much more common. Another common sanction is that the Court may rule that future bankruptcies will not create an automatic stay stopping foreclosure, so that a lender can proceed with a foreclosure notwithstanding your bankruptcy filing.
Therefore, if you plan to stop a foreclosure of your home with a bankruptcy filing, it is imperative that you meet with an experienced lawyer as early on as possible, preferable either before or immediately after receiving a Notice of Default. In order to make sure that your bankruptcy is successful in saving your home from foreclosure, you will need your filing to be well timed, well planned, and fully capable of being confirmed by the court. Otherwise stated, you will want to file a legitimate case, with the intention of pursuing it all the way through and completing it. This may require significant planning and strategizing on the part of you and your attorney in order to make sure all of your ducks are in a row.
In cases of home foreclosure, time is always the enemy. Seek legal counsel as early as possible. Careful planning, and adequate time to plan, will make the difference between having a Chapter 13 repayment bankruptcy that will be successful or one that may find many roadblocks. You may also need to do some pre-bankruptcy planning with a San Diego foreclosure attorney in advance of your foreclosure sale date in order to keep all of your assets when you file bankruptcy. If your emergency bankruptcy is filed with little or no time to plan for the filing, you may not be able to obtain the best results from your filing and end up coming short of the goals you needed to achieve.