How long will a chapter 7 bankruptcy delay a foreclosure in Colorado?

in Foreclosure

BRANDI A asked:

My townhome is scheduled for foreclosure sale date May 13th 2009.
My chapter 7 bankruptcy will be filed 3/25/09. How long will this delay the foreclosure sale?

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2 comments

hormozat on November 24, 2009 at 2:01 am

The moment case is filed and its done online court will issue an automatic stay and a state is created which means all your assets including your socks becomes property of court no one can touch any of those assets while you are in bankruptcy unless your bankruptcy is dismissed and stay is lifted .sounds like you dont have an atterney other wise you would’nt ask this question .in chapter 7 you can not be behinde on your house payment and file because you will loose your house if you want to keep your house you need to file chapter 13 .i strongly recomend talking to a good atterny .because court does not give a ligall advice .and making a mistake in bankruptcy filing can cost you a lot good lock.
Becky on November 26, 2009 at 3:11 pm

It will delay it as long as the bank doesn’t take action – however, the bank can pull themselves out of it (almost immediately) and proceed with the foreclosure. They will file (if severely delinquent and not notified that your intent is to let the house go in the BK) a Motion for Relief. Once that is granted they will continue foreclosure proceedings, your credit goes back to reporting delinquent on the house payment, then pre-foreclosure, foreclosure, etc. Now you will have both a BK and a Foreclosure on your credit.

The other thing is that if you would like to keep the house, once you file BK, you will not be eligible for any type of workout from your service or the government. The BK is your workout. Do you really want to go this route, do you have to?? If you want to keep the house but still need to get out from other debt, you can always bring your house-payment current (call your lender to get a reinstatement figure) and then BK the rest of your debt. The mortgage will have to be included however as long as you continue to make your payments on time, the bank/investor will not pursue you to take the home back. The banks don’t want to foreclose and won’t, as long as you meet your monthly obligation. But, if you do file BK and continue not to pay there are protections for the bank in place as well – they can remove themselves and continue foreclosure, as can car companies and credit card companies (but this is unlikely).

Good Luck