Can bankruptcy stop a foreclosure or repossession in Louisiana?

Filing for bankruptcy can indeed serve as a powerful tool to prevent home foreclosure and repossession in Louisiana. When you file for bankruptcy, an automatic stay is immediately put into effect. This stay halts most collection activities by creditors, including foreclosure on a home or repossession of other property.

In particular, Chapter 13 bankruptcy can be an effective way to save your home. Under Chapter 13, you can restructure your debts into a manageable repayment plan, which can include arrears on your mortgage or car loan. This allows you to spread out these overdue payments over a period of three to five years while keeping up with your current payments. As long as you stick to the terms of your repayment plan, your home will be protected from foreclosure.

However, it’s important to note that bankruptcy may not be the right solution for everyone. The process can be complex and requires careful consideration and planning. That’s where we come in. At Simon Fitzgerald LLC, our experienced bankruptcy attorneys are dedicated to helping you understand your options and guide you through the process.

We understand the stress and uncertainty that come with facing foreclosure or repossession. Our team is committed to providing you with the information and support you need to make the best decision for your financial future. We’ll work with you to explore all available options, including but not limited to bankruptcy, to help you keep your home and get back on track financially.

While bankruptcy can be a powerful tool to prevent foreclosure and repossession in Louisiana, it’s important to seek professional advice to understand all your options. At Simon Fitzgerald LLC, we’re here to provide the guidance and support you need. Contact us today to learn more about how we can assist you.

What are the differences between the automatic stay in Chapter 7 and Chapter 13 bankruptcy regarding foreclosure prevention?

When it comes to preventing foreclosure, both Chapter 7 and Chapter 13 bankruptcy provide the powerful tool of the automatic stay. Our attorneys will provide you with comprehensive and persuasive answers, highlighting the differences between the automatic stay in each bankruptcy chapter and its impact on foreclosure prevention.

  • Chapter 7 Bankruptcy: The automatic stay in Chapter 7 bankruptcy temporarily halts foreclosure proceedings, providing you with immediate relief. However, it does not provide a long‑term solution to catch up on missed mortgage payments. If you wish to keep your home, you will need to work out an agreement with your mortgage lender to reaffirm the debt or explore other options to address the delinquency.
  • Chapter 13 Bankruptcy: Chapter 13 bankruptcy offers a more comprehensive approach to foreclosure prevention. The automatic stay is invoked upon filing and provides immediate relief, halting foreclosure proceedings. In a Chapter 13 repayment plan, you can propose a plan to catch up on missed mortgage payments over a three to five‑year period. This allows you to prevent foreclosure and maintain your home by making regular mortgage payments and fulfilling the terms of the repayment plan.

Are there any exceptions to the foreclosure prevention measures offered by bankruptcy in Louisiana?

While bankruptcy provides powerful tools to prevent foreclosure, there are certain exceptions and limitations to consider. Our attorneys will provide you with comprehensive and persuasive information regarding any exceptions to the foreclosure prevention measures offered by bankruptcy in Louisiana.

  • Repeat Foreclosure Filings: If you have previously filed for bankruptcy and had a foreclosure case dismissed within the last year, the automatic stay may be limited in duration or may not go into effect automatically. Additional steps may be required to extend the stay or seek other forms of foreclosure prevention.
  • Secured Debts and Collateral: Bankruptcy does not eliminate your obligation to pay secured debts. If you are delinquent on mortgage payments or other secured debts, bankruptcy can provide temporary relief through the automatic stay, but you will need to work out a plan to address the delinquency and continue making timely payments to avoid foreclosure.

Our experienced bankruptcy attorneys at Simon Fitzgerald LLC will guide you through the foreclosure prevention process, ensuring that you understand the options available and the impact of bankruptcy on your specific situation. We will provide accurate and persuasive information, highlighting the power of bankruptcy in preventing home foreclosure and repossession in Louisiana.

For more information, you can visit: U.S. Department of Housing and Urban Development ‑ Avoiding Foreclosure: Louisiana

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