Adequate protection

[CharlotteInvest]

What is the name of your state? nc

can someone please explain the adequate protection order for homeowners that file bankruptcy? i am totally clueless to the bankruptcy process and any helpful is appreciated.

 

[bigun]

Once a bk petition is filed, the debtor is protected by an automatic stay against any collection activity.
To proceed with foreclosure, the lender must file for relief from stay.

 

[CharlotteInvest]

thanks bigun. exactly when does the lender file the relief from stay? when the homeowner breach the bankruptcy agreement, and if so one payment or a few?

thanks for your help.

 

[bigun]

They can file for relief from stay anytime the debtor is behind on the mortgage {Chapter 7}.
In a 13, if the plan is approved, any arreage is paid back at 100% over a 60 month period. As long as the debtor is current on the plan payments and his mortgage, they have no standing to file for relief from stay.

 

[CharlotteInvest]

bigun that was very informative. is there some type of noticed filed before they can petition for a relief of stay?

 

[CharlotteInvest]

thanks again bigun.