How do bankruptcy and judicial foreclosure interact in Oregon ? Can a homeowner still save their property ?
Portland, OR |
Can a homeowner file for bankruptcy in an attempt to wipe down unsecured debts and maybe save the property after a writ of execution has been file in a judicial foreclosure? What about during the redemption period?
I can't speak for specifically to Oregon foreclosure process...
But in general, I have had clients who could not get a loan modification prior to filing bankruptcy because of too much other debt, and then were able to get a modification after bankruptcy since the debt was discharged. So yes, it is possible. However, if you are at the tail end of the foreclosure process, it may be too little too late.
Get with a bankruptcy attorney, yesterday, to explore you options. A bankruptcy will stop a foreclosure (so long as the sale has not took place). Which option is right for your circumstances is a discussion you need to have with local bankruptcy counsel.
Filing a bankruptcy can temporarily stop a foreclosure from taking place. If the mortgage company applies to "lift the bankruptcy stay," it may then proceed with the foreclosure. Once the bankruptcy ends, the protection of the bankruptcy court ends and the foreclosure process can resume. I am not familiar with redemption periods so can't say for sure whether bankruptcy would extend the redemption period or not. Hope this perspective helps!
If you are successful with a Chapter 13 case, you may be able to avoid foreclosure altogether. If you are successful with a Chapter 7 case, the bankruptcy filing will typically put the foreclosure on hold temporarily (until the lender makes a motion to lift the stay and gets that motion granted). In short, if you stay, you must pay.
Getting rid of unsecured debts has no direct effect on your foreclosure. You also mentioned the redemption period. If your income situation has changed after filing a Chapter 7, or even if it changes in a Chapter 13, you must disclose the changes. If you get a discharge under Chapter 7, you will probably be okay to redeem afterwards (as long as you don't have any change in income to report post-Chapter 7). You need to speak to an attorney in your area to see what the best options are, based on your specific facts.
If time is short, you/your attorney can file what we call, in the field, an "emergency filing" to buy you some time. However, you have 14 days to complete the rest of your forms or your case will be dismissed (Rule 1007(c))- good luck.
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