As soon as an individual or couple files for bankruptcy, all collection actions must cease at once. One of the first parts of the bankruptcy process involves the issuance of an "automatic stay". An automatic stay is a temporary injunction, which goes into effect immediately after you file for bankruptcy protection, and serves to prevent creditors from being able to pursue any form of debt collection including sending written requests for repayment, calling you in an attempt to collect on a loan, filing a lawsuit, repossessing your vehicle, or moving forward with foreclosure proceedings.
If you are seriously behind on your mortgage payments and you are fearful that your creditor may initiate foreclosure proceedings, there are numerous actions that can be taken prior to filing for bankruptcy. Loan modification, a deed in lieu of foreclosure and a short sale, are all alternatives to filing for bankruptcy and halt foreclosure proceedings. Not all of these alternatives will afford you the option of being able to remain in your home, but they will help prevent a foreclosure from being added to your credit record. Yes, filing for bankruptcy will affect your credit as well, however a foreclosure could have a longer-lasting effect on your credit, and potentially prevent you from being able to purchase a home, finance a car, or obtain a personal loan in the future.
At the Law Offices of Marshall D. Schultz, we understand the stress and uncertainty you may feel when being threatened with losing your home. When you contact us, we will work diligently to see that you receive the compassionate, competent representation you need to protect your home and other assets. With more than 33 years combined experience, we know how bankruptcy proceedings work, and we know what it will take to help you get your financial situation resolved.
Contact a Detroit bankruptcy attorneyat our offices today to schedule a free consultation.