Can a bank foreclose
on your property after bankruptcy?
King and King Bankruptcy 9/21/2012
It’s true in most cases that bankruptcy filing will stop a
foreclosure, as long as a foreclosure sale has not taken place. However, many
debtors wonder if their bank can come back after the bankruptcy case is closed
and initiate foreclosure proceedings once again. Let’s take a closer look at
this question.
Fact: the automatic stay imposed through a bankruptcy filing
buys a debtor time in which to review and reorganize all of their debts. No
collection efforts may take place while the stay is in effect, and that
includes foreclosure proceedings. However, in some cases a lender may petition
the court to have the stay lifted so that it may reinstate a foreclosure where
it left off in order to take the property back.
In order to lift the stay, the lender must show that the
homeowner is not current on the mortgage payments. As long as you stay current on your mortgage
payments and property taxes while in bankruptcy, you are not at risk.
Nevertheless, the lender may wait until the bankruptcy case
is closed to start (or continue) foreclosure proceedings. If a debtor falls
behind on payments after a bankruptcy is concluded, a lender may initiate
foreclosure proceedings on the property.
If you have questions about whether a bankruptcy would be
appropriate to save your home from foreclosure, an experienced attorney can
advise you. Call King and King in Atlanta ,
Georgia
