But at what point of the foreclosure process can I still file bankruptcy?
Is it too late to file for Chapter 7 bankruptcy if I already got the Notice of Default? or do I still have time after the NOD? State is California.
Posted November 1st, 2009 in Bankruptcy Q And A. Tagged: chapter 7 bankruptcy, nod, notice of default.
You can file a Chapter 7 bankruptcy at any time, up to and after the foreclosure. A Chapter 7 does not include the house debt; it only discharges unsecured debt (credit cards, personal loans, etc.). The Chapter 7 will have nothing to do with stopping the foreclosure process on your house.
If you are thinking about filing Chapter 13, you can also file this before or after the foreclosure has gone through. It can be used a few days before the sheriff sale of the house to delay the auction to give you a chance to work out a payment plan with the lender. But a Chapter 13 is the only bankruptcy type that will put the foreclosure process on hold. It can be done either before or after the Notice of Default.
It can be done before or after the sheriff sale, but if it is done after the sheriff sale, it will not include the house. That is because the auction will transfer ownership of the house, and you can’t include in bankruptcy an asset that you no longer own.
Bottom line: Chapter 7 won’t help you delay foreclosure. Chapter 13 will delay the process, but only if done before the sheriff sale.
Good luck.
November 1st, 2009 at 7:33 amForeclosureFish
You still have time. Until the bank actually seizes your house, you can still get out. You’re in pre-foreclosure stage.
November 1st, 2009 at 7:33 am