Oklahoma Bankruptcy HelpDoes Bankruptcy Stop Foreclosure in Tulsa Oklahoma

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One of the most frightening things a person can face is the loss of their home. When bills pile up, debtors are often left scrambling to try to make ends meet.  They fall behind in all payments, including their mortgage payments. The result is that a debtor may face foreclosure and the possible loss of their home. It is possible to stop foreclosure in Oklahoma. Bankruptcy law allows a debtor to keep their home under certain circumstances.

Here is what you need to know about foreclosure and how bankruptcy may help.

Understanding Foreclosure Basics

For the most part, a lender cannot begin the foreclosure process until the debtor is at least 120 days behind in payments. During this time, the lender must contact the debtor in writing several times to inform the debtor of their rights and of all mitigation and redemptions tools that may be available to them. As soon as 36 days after a missed payment, the lender must notify the debtor of tools available to them, such as loan modification, forbearance options, or other loan repayment plan options.

A foreclosure is a forced sale of a property. There are non-judicial and judicial foreclosures. The mortgage contract can specify the lender’s rights to foreclosure. If the mortgage contains a power of sale clause, the lender can likely force a sale without judicial oversight. However, a debtor can force a judicial foreclosure by taking specific steps at least 10 days before the foreclosure. This can convert a non-judicial foreclosure into a judicial one. A judicial foreclosure requires a lawsuit filed by the lender. This can buy you time. Your bankruptcy attorney can let you know if this is a step that can help your particular situation.

Bankruptcy Can Stop Foreclosure in Oklahoma

Because bankruptcy laws have an automatic stay or injunction that goes into effect as soon as a bankruptcy petition is filed, filing for bankruptcy can stop a foreclosure, either temporarily or permanently. The automatic stay stops all actions by all creditors against the debtor. It covers all sorts of actions including phone calls, letters, and legal proceedings.

A Chapter 7 filing can delay a foreclosure, often for months. This can allow a debtor time to pick up their lives and move on, or find enough money to become current on their mortgage. A Chapter 13 filing requires that the debtor develop a plan to pay off some or all of their debt. Successfully completing the plan can allow a more permanent solution to foreclosure.

Deciding which of these filings is right for you can be tricky. There are many factors to consider. If you are facing foreclosure, it is best to get help from an experienced Tulsa bankruptcy attorney as soon as possible.

Free Consultation with a Tulsa Bankruptcy Attorney

Financial Freedom Bankruptcy Lawyers of Tulsa offer free consultations to help debt-burdened Oklahomans to discover the best approach to their financial crisis.  Your home is important to you. Don’t delay. Call us at (918) 786-9600 to start your free consultation today. You may also contact us using the contact form button on this page to ask a professional bankruptcy attorney in Tulsa your personal questions.

 

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