If you answered “yes” to any of these questions, filing for bankruptcy relief may be the solution you have been looking for.
Attorney Christian B. Felden can help you take back control of your life through strategic use of the bankruptcy laws. We serve clients in a variety of bankruptcy matters.
We all experience financial difficulties from time to time, and foreclosure can happen to anyone. THE GOOD NEWS IS: WE CAN HELP! WE CAN STOP YOUR FORECLOSURE – but you only have so much time!*
If you will remember, way back when you took out your mortgage, you signed two specific documents, the Note and the Mortgage or Deed of Trust as it is called in North Carolina. The Note is your personal promise to repay the money you borrowed from the bank in order to buy your home. The Mortgage is your agreement to use your home as “collateral” for the loan. These two documents place a lien on your real property.
“Foreclosure” is simply the court procedure used by your mortgage lender to sell your real property to repay the mortgage that you stopped paying on. Once the foreclosure is granted by the courts, the bank applies the money from the sale of your property to payment of your outstanding debt.
Foreclosure is something that can happen to anybody. In today’s economy, there are a record number of people receiving a Notice of Default and losing their homes to foreclosure. Many situations can affect a person’s ability to make timely mortgage payments, including: Temporary Job Loss, Rising Interest Rates, Medical Problems, Recent Divorce, and Non-Paying Tenants.
The reality is that any of these issues can cause a person to fall behind on their mortgage payments. While this may seem stressful and overwhelming, there is assistance available. Here at Felden and Felden, we have helped many homeowners avoid the devastating effects of foreclosure. Our skilled legal team can stop the foreclosure process, and help you save your home!
With a Chapter 13 Bankruptcy, we can:
*In North Carolina, we can stop your foreclosure, but you can’t wait forever! You only have until EXACTLY 10 days after the actual foreclosure sale to file your bankruptcy and stop the foreclosure. If you wait until day 11, you have waited too long.
*In Florida, your bankruptcy MUST be filed before the Foreclosure sale. There is no 10 day waiting period in Florida as there is in North Carolina.
We will set up a repayment arrangement in your Chapter 13 Plan. If you want to keep your home, the bad news is that you do have to repay the money that you are behind. The good news, however, is that you are generally given the entire length of your plan (36-60 months, depending on your circumstances) to make-up these missed payments. In most cases, you can pay back the arrearage without interest or additional late fees or penalties. For example, if you are $3,500.00 behind, your repayment could be $3,500/60 or only 58.33 per month!
That is a hard question to answer. It really depends upon the bank and if they are in a rush to get your property back or not. Generally speaking, after the foreclosure action is complete, the person who bought your property at the foreclosure sale checks to see if you are still living in the property. If you are still there (and you have NOT filed bankruptcy), they get the Sheriff involved. The Sheriff serves you with a “Notice to Quit” the property, which requires you to vacate the property within x amount of days. If you don’t vacate within that time, the Sheriff comes and physically throws you out, along with your family and all your belongings. You are literally put out on the street. Remember here that in North Carolina, you only have until EXACTLY 10 days after the actual foreclosure sale to file your bankruptcy and stop the foreclosure. If you wait until day 11, you have waited too long.
This is where the Note comes in. Remember that Note your signed at the closing? By signing the Note, you personally promised that you would repay the loan. That’s why you still owe whatever part of the debt is not paid after the sale of your property. This is known as a “mortgage deficiency”. In most cases, the bank will try to collect on this Note obligation by suing you personally and getting a judgment against you – even after they have already taken back your home.
Yes! That is one of the great parts about the protection of the Bankruptcy Laws. The bad news is that you owe it. The good news is that this debt is now an “unsecured debt” and by filing bankruptcy you can get eliminate most, if not all of it!
If your home is in foreclosure or is about to be, the answer is call us right now, today! The sooner the better. The faster you contact us before a foreclosure or threatened foreclosure, the faster you can learn your options, and you may even be able to reduce the various foreclosure expenses that the bank will try to charge you, such as additional interest and attorneys’ fees or costs. We can start to work on your paperwork together as soon as you contact our office.
Sure! Once your Chapter 13 bankruptcy is filed, if you decide you want to sell your home, our office will walk you through the simple process of filing a Motion with the Courts asking for permission to sell your home. It is almost always granted.
Have You Fallen 2 Months or More Behind on Your Payments?
If you have, you already know that the bank doesn’t want to hear why. Your personal problems will not concern them. They only want your payment…or your car. Period. The end.
If you have pledged your vehicle as security for a debt, or if you are currently leasing or financing a car, you have several choices for these secured loans after you file for bankruptcy relief.
A reaffirmation agreement is a voluntary contract signed between you and your auto lender. By signing a reaffirmation agreement, you agree to pay the balance owed on your car loan in a timely fashion, every month, despite your bankruptcy filing. When you make timely payments, the lender may not repossess your car. NOTE: Reaffirmed debts are not discharged in bankruptcy.
If you do not make your payments, the auto lender is able to Motion the Court to lift the Automatic Stay, repossess your car, and they may also sue you for the deficiency balance.
On rare occasions, in bankruptcy, you are allowed to purchase, or “redeem”, your car from your creditor by making a one-time payment equal to the car’s fair market value. You must pay your lender the replacement retail cost of the car, and the remainder of the loan debt will be discharged in your bankruptcy.
If you can’t afford the monthly payments on your auto lease or loan, you are able to surrender the car directly to the lender. The debt will then be eliminated as part of your bankruptcy filing. You can also surrender the car if you decide that the car is worth less than the loan on it.
Here is the best kept secret that “they” don’t want you to know…
THE CRAM DOWN! If you have owned your car for over 910 days, we may be able to reduce both the payoff on your car, AND your monthly payment! Using the vehicle’s current market value as your payoff, you will be allowed to make payments over a period of 36 to 60 months (depending on your circumstances) and your creditor must accept this as payment in full!
It’s hard to decide what is worse: an insurmountable pile of debts or the constant harassment that comes with if in the form of nasty phone calls and threatening letters from creditors and collection agencies. These bill collectors not only harass and humiliate you, but they often bother or threaten employers and other people who are close to you as well. DON’T ALLOW THIS TO CONTINUE! Feeling ill-at-ease is not an inevitable part of life. Explore the legal protections that are available to you, and stop this constant reminder of your financial problems.
At Felden and Felden, we can help you use the bankruptcy codes to stop creditor harassment.
Did you know that under current Federal Bankruptcy Laws, once you retain a bankruptcy attorney you can direct all creditors and collection agencies to our office so that they stop calling you? Once we begin to represent you, we will immediately take over handling all of these calls and threats of litigation so you don’t have to worry with them any longer! And once we do file your bankruptcy petition your family will immediately be protected from creditor harassment. The Automatic Stay provision of the Bankruptcy states that creditors are not allowed to call you or send you collection letters, and they must stop any legal action against you!
When you file for bankruptcy relief, all lawsuits and wage garnishments will be stopped immediately due to the automatic stay provision of your filing!
If your water, electricity or gas have been turned off by the utility company, the automatic stay of your bankruptcy filing will require the utility company to reconnect the utilities in your home immediately!
NOTE: Sometimes the utility company will require a small deposit after you file for bankruptcy. If you cannot pay the deposit, they may be able to turn off your lights and heat again even after your bankruptcy is filed.
The automatic stay of your bankruptcy filing can protect you from Federal and/or State tax levies or property seizures for a debt you owe. Remember, the government always has the authority to audit you, and can also require you to file tax returns or assess a tax liability and require payment of the assessment, despite your bankruptcy filing.