Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Chapter 13 can be filed 4 years from a prior Chapter 7 filing so you are eligible to file a Chapter 13 should you decide to do so. The Chapter 13 can be filed as long as the sale date for the home has not occured. This will stop the foreclosure action, and allow you to get back on your feet and payments caught up.
If the foreclosure goes through and the house is sold, the mortgage company will get what is called a "deficiency judgment" this is the difference in the amount owed on the note and what they got at the sale. This judgment can be executed and your wage or bank accounts garnished. The process is not a quick one, but it could happen at any time once they receive the deficiency judgment.
If you are still within the timeframe to file Chapter 13 before the sale of the house, you may be able to keep your home, if that is what you want. If you want to surrender the home, filing Chapter 13 will let you do this and will keep them from getting a deficiency judgment.
I think it is worth it for you in this situation to consult with a bankruptcy attorney right away!
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).