When a bankruptcy case is filed, all collection and foreclosure activity stops. When it resumes it does so from where it left off. It does not re start from the beginning. The Court should re schedule the settlement conference, but your case may fall through the cracks or a mistake may occur.
Answers are provided for direction only; it is not a substitute for an office consultation.
Your question is whether the Settlement Conferences will restart in State Court after your Bankruptcy case has closed. The answer, unfortunately, is "probably."
It is critical that you have a bankruptcy attorney who understands the foreclosure settlement process if you intend to continue working with your bank. Chances are, the action in the State Court will come to a halt after your bankruptcy case is filed. It is important for your attorney to notify the bank, the bank's attorney(s), the Judge (if any), as well as the Clerk's Office. It's also important for you to draft and submit an Answer in order to avoid defaulting. If you properly notice every party, the settlement conferences will probably restart after the bankruptcy case ends.
Be aware that there is another path to saving your home. You can have a bankruptcy attorney handle your foreclosure settlement conference within the Bankruptcy Court. The process is called Loss Mitigation. This may be the way to go if you plan on working with your bank, anyway. Make sure to hire an attorney who is familiar with the process of obtaining loan modifications for clients.
Good luck with your case!
The filing of a Chapter 7 sets in place the Automatic Stay, prohibiting all creditors from making any efforts to collect on the outstanding liability. The automatic stay also prohibits the creditor from engaging in discussions with you directly, and requires that any communication take place through your attorney.
If you are in the process of settlement discussions with the bank through the foreclosure process, the filing will stop the court process until the bankruptcy case has been fully administered or the creditor seeks to lift the automatic stay. Many Bankruptcy Courts allow debtors filing for Bankruptcy to avail themselves of the Loss Mitigation program. Loss Mitigation is a Court monitored modification process. The Court sets certain timelines for the creditor to come in good faith and process an application for a modification of your loan.
A Bankruptcy attorney will guide you through this process and help you get a handle of your finances, mortgage, and other debt you may have. Even if you choose not to go the route of bankruptcy, you should consult a bankruptcy attorney to learn in depth what the pros and cons are and what the process is like. Making an informed decision is critical at this juncture in your life.
Best of luck to you.