Forclosure after Bankruptcy

[jstreet]

What is the name of your state? Minnesota

I have friends who filed both chapter 7 and chapter 13 this last spring. The bank is also foreclosing on thier house. The bank has told them that since they missed payments after the bankruptcy was filed that the bankruptcy no longer protects them from foreclosure. Is this true? Are there steps they can take to protect themselves from losing thier home, and working things out with the bank?


Thank you!!

[HomeGuru]

Originally posted by jstreet
What is the name of your state? Minnesota

I have friends who filed both chapter 7 and chapter 13 this last spring. The bank is also foreclosing on thier house. The bank has told them that since they missed payments after the bankruptcy was filed that the bankruptcy no longer protects them from foreclosure. Is this true? Are there steps they can take to protect themselves from losing thier home, and working things out with the bank?


Thank you!!

**A: yes, generally it is true once the automatic stay is lifted. Did they not file a 13 then a 7?

[jstreet]

yes, they did file a 13 then a 7. How long is the stay generally for? Is there anything that can save their house?

[Ladynred]

The stay is generally good for the duration of the bankruptcy and up until the case is closed by the Trustee after discharge. However, a creditor can, at any time, request a relief from the stay to move forward with foreclosure proceedings.

If the mortgage lender isn't getting paid and they can't catch up arrearages, then the relief from stay was apparently granted and your friends will lose their house.

[jstreet]

Thank you so much for all of your advice!