Up to ten Years.
The fact that you’ve filed bankruptcy can appear on your credit report for ten years from the date your case was filed. However, this does not mean that you can’t buy a house, rent an apartment, get a car loan or a credit card for ten years. Debts discharged in your bankruptcy should be listed on your credit report as having a zero balance. Because bankruptcy wipes out your old debts, you will likely to be in a better position to pay your current bills and make monthly payments on new debt.
In fact, you may receive credit offers soon after your debts are discharged in bankruptcy. However, it would be wise to carefully consider the terms, need, and affordability of each new credit offer. Wisely using credit can go a long way in helping you avoid future financial problems.
We proudly assist residents of Long Island (Nassau county, Suffolk county) and New York City (Queens, Brooklyn, Bronx, Staten Island, Manhattan) with their bankruptcy filings. We are conveniently located in the heart of Nassau County, Long Island, at 393 Jericho Tpke., Ste. 208, Mineola, NY 11501.
Call (516) 858-2620 to arrange a FREE consultation with a bankruptcy attorney!
Please visit our Bankruptcy category to learn more about filing for bankruptcy.
Yes.
Why?
Because the longer you wait to file bankruptcy, the more difficult it may be to save your home.
But the bank might modify my mortgage.
Sure, but what if the bank doesn’t modify your mortgage. While you wait for a potential loan modification – your mortgage arrears and the interest are piling up. This could potentially prevent you from putting forth a confirmable chapter 13 plan.
NY bankruptcy law just got better.
On 1/21/11 new bankruptcy exemptions go into effect (see our earlier posts Changes to NY Bankruptcy Exemptions and Federal Bankruptcy Exemptions & NY).
You should at least consult with a knowledgeable bankruptcy attorney to find out how filing bankruptcy can save your home (see our earlier posts Filing Bankruptcy to Save Your Home From Foreclosure and How Can I Use My Ch.7 Bankruptcy to Avoid Foreclosure).
We understand that bankruptcy is not for everyone. That is why we also offer foreclosure defense, debt negotiation, etc. We are simply stating that bankruptcy is an option that should be considered. At The Law Firm of Vaughn & Weber, PLLC, we don’t push our clients to file bankruptcy. We give you all of your options and assist you in deciding which course of action is best for you.
This is not legal advice!
The Law Firm of Vaughn & Weber, PLLC routinely represents homeowners facing foreclosure. We examine each homeowner’s specific situation to determine their best course of action.
We proudly assist residents of Long Island (Nassau county, Suffolk county) and New York City (Queens, Brooklyn, Bronx, Staten Island, Manhattan) with their bankruptcy and foreclosure matters. We are conveniently located in the heart of Nassau County, Long Island, at 393 Jericho Tpke., Ste. 208, Mineola, NY 11501.
Call (516) 858-2620 to arrange a FREE consultation with a bankruptcy and foreclosure attorney!
Please visit our Foreclosure category to learn more about foreclosure issues.
Please visit our Bankruptcy category to learn more about filing for bankruptcy.
Bank won’t modify my mortgage, how can I use the chapter 7 bankruptcy I just filed to avoid foreclosure?
The following are “some” of the things you can do to avoid foreclosure if you just filed a chapter 7 bankruptcy:
“Maybe” filing a “chapter 20” bankruptcy, which is a chapter 7 followed by a chapter 13, will help you.
- make sure the ch. 7 discharge is granted;
- some time after discharge is granted in the 7, but before the sale date of course, file a ch. 13 to force the lender to accept the current payment + the arrears spread over 36 or 60 months.
- Note: There likely won’t be a discharge at the end of the Chapter 13. This really shouldn’t matter because you just received a chapter 7 discharge.
- Note: You should consider “stripping off” any judgment and/or wholly unsecured liens.
- Note: If this is investment property you can try to cram it down in a ch.13. However, the cramdown value has to be paid off by completion of the ch. 13 plan.
If none of the above will work, you could:
- After discharge, continue trying to obtain a loan modification from your lender (the foreclosure action will likely continue unopposed).
- Contest the foreclosure action in state court after the stay is lifted or terminates.
- Note: You may be able to defend the foreclosure even if a default judgment has been entered against you(see our earlier post “Fighting foreclosure after default judgment.”)
This is not legal advice!
The Law Firm of Vaughn & Weber, PLLC routinely represents homeowners facing foreclosure who have already filed or need to file for bankruptcy. We examine each homeowner’s specific situation to determine their best course of action.
We proudly assist residents of Long Island (Nassau county, Suffolk county) and New York City (Queens, Brooklyn, Bronx, Staten Island, Manhattan) with their bankruptcy and foreclosure matters.
Call (516) 858-2620 to arrange a FREE consultation with a bankruptcy and foreclosure attorney!
Please visit our Foreclosure category to learn more about foreclosure issues.
Please visit our Bankruptcy category to learn more about filing for bankruptcy.
Tenant Files Bankruptcy
What happens if my tenant files bankruptcy?
Back Rent
If the tenant owed back rent and filed for chapter 7 bankruptcy, that debt is now likely discharged. This means that you will never be able to collect the rent that was owed to you at the time the tenant filed for bankruptcy. The tenant can voluntarily pay you, but you can not attempt to collect that past due rent while the automatic stay is in effect or after the debt is discharged. Such attempts would be either a stay or discharge violation.
Eviction
If you were in the process of evicting your tenant when they filed for bankruptcy, that eviction action is now likely stayed. This means that you will have to make a “lift stay” motion and have it granted by a Bankruptcy Court Judge in order to continue with the eviction in Landlord-Tenant court. However, under certain specific circumstances you will be allowed to continue with the eviction despite your tenant having filed for bankruptcy.
Long Island Landlord Tenant Attorney
As always, the Law Firm of Vaughn, Weber & Prakope, PLLC is here to assist you. Call (516) 858-2620 to arrange a FREE consultation with a Landlord Tenant attorney!
Please visit our Bankruptcy category to learn more about filing chapter 7 or 13 bankruptcy.
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