Florida Bankruptcy Property Appraisals and Home Appraisers Information
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McLean & Associates, Inc
appraisal and real estate consulting
appraisal and real estate consulting
| Toll Free: 866-775-3395 Palm Beach: 561-674-0498 Cell Line: 954-415-1630 Fax Line: 561-892-0913 |
| www.FastFloridaAppraisals.com - Michael W. Bode - McLean & Associates, Inc. |
A Chapter 13 bankruptcy filing can stall or derail foreclosure proceedings.
That's because of bankruptcy's "automatic stay" provisions that force creditors
to the sidelines while the bankruptcy court sorts things out. The lender can
petition the court to allow it to continue with the foreclosure, depending on
where your are in the foreclosure process, but it should buy you some time.
If there is no equity in the house (today's value less costs of sale less payoff
balances on all liens) the trustee in a Chapter 7 may abandon the house to
you. That is, you keep it, as long as you pay the mortgage.
A bankruptcy does not relieve the property of the liability of voluntary liens, like
mortgage or deeds of trust, nor for tax liens. So, the lender retains the right to
foreclose if you don't pay.
That's because of bankruptcy's "automatic stay" provisions that force creditors
to the sidelines while the bankruptcy court sorts things out. The lender can
petition the court to allow it to continue with the foreclosure, depending on
where your are in the foreclosure process, but it should buy you some time.
If there is no equity in the house (today's value less costs of sale less payoff
balances on all liens) the trustee in a Chapter 7 may abandon the house to
you. That is, you keep it, as long as you pay the mortgage.
A bankruptcy does not relieve the property of the liability of voluntary liens, like
mortgage or deeds of trust, nor for tax liens. So, the lender retains the right to
foreclose if you don't pay.
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The most common types of personal bankruptcy for individuals are
Chapter 7 and Chapter 13. In Chapter 7, a debtor surrenders his or her
non-exempt property to a bankruptcy trustee who then liquidates the
property and distributes the proceeds to the debtor's unsecured
creditors. In exchange, the debtor is entitled to a discharge of debt,
except that the debtor will not be granted a discharge if he or she is guilty
of certain types of inappropriate behavior (e.g. concealing records
relating to financial condition) and except that some debts (e.g. spousal
support, some taxes) will not be discharged even though the debtor is
generally discharged from his or her debt. Many individuals in financial
distress own only exempt property (e.g. clothes, household goods, an
older car) and will not have to surrender any property to the trustee. The
amount of property that a debtor may exempt varies from state to state.
Chapter 7 relief is available only once in any eight year period. Generally,
the rights of secured creditors to their collateral continues even though
their debt is discharged (e.g. absent some arrangement by a debtor to
surrender a car or "reaffirm" a debt, the creditor with a security interest in
the debtor's car may repossess the car even if the debt to the creditor is
discharged).
Chapter 7 and Chapter 13. In Chapter 7, a debtor surrenders his or her
non-exempt property to a bankruptcy trustee who then liquidates the
property and distributes the proceeds to the debtor's unsecured
creditors. In exchange, the debtor is entitled to a discharge of debt,
except that the debtor will not be granted a discharge if he or she is guilty
of certain types of inappropriate behavior (e.g. concealing records
relating to financial condition) and except that some debts (e.g. spousal
support, some taxes) will not be discharged even though the debtor is
generally discharged from his or her debt. Many individuals in financial
distress own only exempt property (e.g. clothes, household goods, an
older car) and will not have to surrender any property to the trustee. The
amount of property that a debtor may exempt varies from state to state.
Chapter 7 relief is available only once in any eight year period. Generally,
the rights of secured creditors to their collateral continues even though
their debt is discharged (e.g. absent some arrangement by a debtor to
surrender a car or "reaffirm" a debt, the creditor with a security interest in
the debtor's car may repossess the car even if the debt to the creditor is
discharged).
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