When the Gavel Comes Down: don't be late to your own bankruptcy

If one files chapter 13 bankruptcy or chapter 7 bankruptcy, an automatic stay is instantly imposed by the bankruptcy court: it's a federal court order that readds to creditors: don't mess with the bankruptcy debtor's assets.  Which means, once you've filed bankruptcy, a creditor may not repossess your car or sell your home.  But if you're in default, then it's best to make haste!  

Last year, a Rhode Islander missed the deadline to file bankruptcy before his home was sold by the foreclosing lender. A Bona Fide (“innocent”) Purchaser bought the home at the trustee sale. Our Rhode Islander discovered the BFP hadn’t recorded the deed in the interim between the sale and the bankruptcy. Yet, the Court ruled 8 mos. later that once the memo of sale had been signed, the debtor’s right to cure had passed.

Time is of the essence. If you're in default on your mortgage or car loan, dawdle not! If you're in San Diego, it’s time to consult a San Diego bankruptcy attorney. 

 

The Law Office of Asaph Abrams
Offering free, no-obligation chapter 7 bankruptcy and chapter 13 bankruptcy consultations in San Diego. Visit us at http://www.bankonitsd.com/ or call 858-344-0500. E-mail admin@abramslawsd.com to set an appointment. Also representing Imperial County residents.