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Can Bankruptcy Stop a Foreclosure action?

Dave Giddens, a local Albuquerque Bankruptcy attorney -

Last year, the number of bankruptcy filings in our state numbered 4,330, a 10 percent drop from the previous year when they numbered 4,810, according to a recent article in The Wall Street Journal.* So why the drop in bankruptcies when our economy hasn't fully recovered? The relationship between the number of bankruptcies and the economy is not what you may expect. In fact, statistics indicate that bankruptcies tend to decrease when the economy stalls and increase when the economy is strong.

Foreclosures, on the other hand, tend to decrease when the economy is strong. In our monthly article, we take a look at how filing bankruptcy may help you if you have a foreclosure pending against you.

"In a Chapter 13 filing, as the debtor, you must propose a feasible plan for repaying
creditors, including the mortgage lender. Your ability to proceed with your Chapter 13
plan depends upon a variety of factors, including your basic living expenses and the
amount you are past due on your mortgage payments. If your plan is successful, your
Chapter 13 case can halt a foreclosure action for a period of three to five years and
bring you current on your mortgage obligation. However, you must pay your normal
ongoing mortgage payments in addition to curing any arrears through your Chapter 13
plan. This is most beneficial to debtors who have had a gap in employment or an
unexpected expense, but are now able to afford their mortgage payments.

If you are facing overwhelming debt and you do not want to lose your home, contact an
experienced bankruptcy attorney to discuss your options. Filing a Chapter 7 or Chapter
13 bankruptcy case may help you save your home and obtain a fresh financial start."

For more information about bankruptcy - contact

George "Dave" Giddens, P.C.
10400 Academy Road NE, Suite 350
Albuquerque, New Mexico 87111
Phone: 505.633.6298
Fax: 505.271.4848







** Metcalf, R. (2014, January 26). Three in a Row. The Wall Street Journal, p. C1.

For buying or selling your home, contact me for a free consultation!

Linda DeVlieg, Associate Broker
COLDWELL BANKER LEGACY
10400 ACADEMY NE SUITE 100
Albuquerque, NM 87111
505-440-7200

www.RealEstateInABQ.com

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