What Is "Foreclosure Tuesday?"
In Georgia, the first Tuesday of every month is often referred to as “Foreclosure Tuesday.” This is because sales of foreclosed homes are held at county courthouses throughout the state on the first Tuesday of each month. At these sales, foreclosed properties are sold to the highest bidder.
Unfortunately, foreclosure on an Atlanta home can happen very quickly in Georgia. Financial troubles may cause a family or individual to be unable to make mortgage payments, and banks thus seek foreclosure action.
The idea of losing a home can be both frightening and extremely difficult to face. One effective way to prevent foreclosure is through filing a Georgia Bankruptcy with The Ballard Law Group.
How To Stop Foreclosure in GA
When a person files for bankruptcy in Georgia, an “automatic stay” immediately goes into effect. The “stay” stops creditors from trying to collect debts while you work through your bankruptcy.
The “stay” applies to foreclosure actions too—once a person files for bankruptcy, foreclosure action against their home is automatically stopped. This can be extremely beneficial to a person or family as it gives them time to work out their financial troubles without having to worry about immediately losing their home.
Chapter 7 Bankruptcy and Foreclosure
The ultimate outcome of what happens to your home will depend on what type of Bankruptcy you decide to file. In a Chapter 7 bankruptcy, assets are sold to repay creditors. Therefore, the bankruptcy will stop immediate foreclosure, but it will only be temporary.
To keep your home after filing a Chapter 7 bankruptcy, you will need to become current on your mortgage payments, including any past due payments. If this is not possible, your home may have to be surrendered.
Chapter 13 Bankruptcy and Foreclosure
If you choose to file a Chapter 13 bankruptcy, not only will the foreclosure be stopped immediately, but you will come up with a repayment plan to prevent losing your home in the future.
In a Chapter 13 bankruptcy, a payment plan is created to allow the debtor time to repay their debts, which usually lasts 3-5 years. This plan is particularly helpful in that it gives bankruptcy filers time to catch up on their mortgage payments and ultimately keep their home.
Get Started Today
If you received a notice of foreclosure and are considering filing for bankruptcy to prevent losing your home, you should contact an experienced bankruptcy attorney right away. Since foreclosure is time-sensitive, it is best to have the help and assistance of an attorney right from the start and avoid the stress of trying to stop foreclosure just days before it happens.
Oftentimes due to difficult financial circumstances, foreclosure becomes a reality. Losing a home can be particularly difficult, so filing for bankruptcy is truly an option that can help you hold on to your property and avoid that loss. Although the idea of Bankruptcy can seem frightening, it can be beneficial as it will stop foreclosure and give you time to reorganize your finances.
At the Ballard Law Group our attorneys have years of experience helping Lawrenceville homeowners save their homes through bankruptcy. If you would like to discuss your situation and options to stop the bank from foreclosing on your home contact us for a case consultation by calling (404) 800-9939 or contacting us online.