When people fall behind on their mortgage payments and banks threaten foreclosures, filing for bankruptcy can help stop the foreclosure process and, in some cases, help people deal with their debt so they are able to keep their homes.
If you are facing threats of foreclosure and you are struggling with serious debt, the Denver metro area bankruptcy attorneys at Garcia & Gonzales, P.C. are ready to help you figure out your options for stopping the foreclosure process and, when possible, saving your home. We are skilled at devising innovative solutions to our clients’ debt relief needs so they can get out from under serious debt and focus on a better financial future.
Foreclosures are typically initiated by banks or other lienholders when homeowners have fallen behind on their mortgage payments. Here are just some of the important things to know about the foreclosure process in Colorado:
- When a mortgage company pursues a foreclosure, it has to send the homeowner a notice of the intended foreclosure.
- Once a homeowner receives this notice, he will typically be granted the option to pay the arrears (i.e., the back mortgage payments), request a hearing, etc.
- When it’s not possible for a homeowner to catch up on back mortgage payments (or stop the foreclosure through other options provided by the mortgage company), filing for bankruptcy can halt this process.
- Despite foreclosure proceedings, a homeowner will still be the owner of the home in question until the home is sold at a foreclosure sale.
When a homeowner files for bankruptcy (regardless of the type of bankruptcy), a court injunction known as an automatic stay immediately goes into effect. This automatic stay effectively halts mortgage companies from moving forward with a foreclosure proceeding while the bankruptcy petition is being processed by the court.
From here, however, the type of bankruptcy a person pursues – as well as the details of his financial situation – can impact whether that individual will be able to keep his home. Specifically:
- When pursuing Chapter 7 bankruptcy, people may be able to keep their homes through the bankruptcy process if:
- They are able to discharge enough of their debt to free up enough income to be able to catch up on their mortgage payments; and/or
- The value of the home falls within the applicable bankruptcy homestead exemption.
- When pursuing Chapter 13 bankruptcy, people may be able to keep their homes through the bankruptcy process if:
- The value of the home is less than the amount owed on a first mortgage (which can allow subsequent mortgages and liens to be removed); and/or
- They can devise repayment plans for their outstanding debt that includes plans for getting caught up on outstanding mortgage payments.
Do you need help stopping a foreclosure? If so, you can trust the experienced Denver bankruptcy attorneys at Garcia & Gonzales, P.C. to provide you with experienced help, honest answers and the highest quality legal services. With more than 50 years of combined legal experience, our trusted lawyers have the legal knowledge, skills and insight you can rely on to help you favorably resolve your debt issues and obtain a financial fresh start.
To learn more about your best debt relief options, as well as how we can help you, contact us today by calling (303) 839-8888 or by emailing us using the drop-down contact form at the top of this page.
When you contact us, you will communicate directly with one of our attorneys, not a paralegal or legal assistant. We welcome Spanish-speaking individuals to contact us also – hablamos Español.