Most people know that bankruptcy attorneys can help file Chapter 7 or Chapter 13 bankruptcy and may assist consumers with other parts of the bankruptcy process. However, bankruptcy attorneys can also help protect people from having to file for bankruptcy in the first place. The Law Offices of David Kohm are familiar with many aspects of financial law, including bankruptcy law.
One important area that bankruptcy lawyers are usually knowledgeable about is foreclosure defense. When you fail to pay your mortgage agreement as agreed, the bank can foreclose on your home, or seize it and resell it. However, a qualified attorney can stall this process—which allows you more time to get the money to make payments—or get the foreclosure cancelled altogether.
In order to foreclose, the bank must first prove that it is the lender of record and that it has the right to foreclose. Mortgages are often sold and resold, making this process difficult. In addition, the bank may not have done all its paperwork correctly, which can render the mortgage invalid. Your attorney may ask the court to investigate this, and the foreclosure proceedings will be suspended pending the investigation. If it turns out the bank doesn’t have the right paperwork filed, it may not be allowed to proceed with the foreclosure.
In other cases, attorneys assist clients with filing bankruptcy for the purpose of keeping their homes. If you file Chapter 13 bankruptcy, you can make arrangements to repay your arrears via a structured repayment plan. Conversely, low-income payers can file for Chapter 7 bankruptcy and wipe out debts so that they can afford their mortgage again. In either case, the foreclosure must be suspended while the bankruptcy is in process, so you won’t lose your home.
If you are facing foreclosure, talk to a bankruptcy attorney in Arlington to find out what your options are. You may or may not need to file bankruptcy to save your home. Call the Law Offices of David Kohm at 817-204-0900 for an initial consultation about your situation.
