Chapter 7 and foreclosure

[plantlvr]

Does a 7 delay the foreclosure process like 13? I'm at 30 days into the waiting period and was wondering if the wait delays foreclosure.

[BassBoy]

Sometimes the Ch.7 can delay the forclosure. The lender could hold off filing a motion to lift the stay in order to save time and money because once the debtor is discharged, the stay is automatically relieved. Ultimately, the forclosure could be delayed a month or so...........maybe three at the most.

[plantlvr]

Thanks BassBoy! i was hoping that was true, with all the foreclosures in my town, I think I'll have a lot of time left. I'm almost over the anxiety of being locked out or thrown into the street.

[justbroke]

Does a 7 delay the foreclosure process like 13? I'm at 30 days into the waiting period and was wondering if the wait delays foreclosure.

A Chapter 7 does automatically stop the foreclosure process, as the Automatic Stay rears it's powerful head immediately upon filing.

As to how long the delay is... it is based on when the lender files for a relief from the automatic stay to proceed against the property. However, if the property has any equity, the Trustee will be sniffing around too and may bar the lender from getting the automatic stay.

Remember, filing under Chapter 7 or Chapter 13 automatically places all your property into the Bankruptcy Estate which is administered by the Trustee. No one, not even you, can do anything with it, until the Trustee determines the disposition of each item. Of course, the Trustee's decision is also influenced by your Statement of Intentions in a Chapter 7, or your Plan in a Chapter 13.