However, you must take a bankruptcy Louisville Bankruptcy Lawyer means test to see if you qualify. Speak with a Louisville bankruptcy lawyer to learn more about your options. As we mentioned earlier, bankruptcy is a valid solution for preventing lenders from foreclosing on your home. When you file for bankruptcy, this stops the foreclosure process in its tracks. You have the benefits of the automatic stay, which prevents your creditors from harassing you, from attempting collections, and from foreclosing on your home.
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However, you will still have to catch up on your house payments if you want to keep your property. But if you respond to the lawsuit, the case will go through the litigation process. The lender might then request the court to grant summary judgment. A summary judgment motion asks that the court grant judgment in favor of the lender because the case’s critical aspects aren’t in dispute.
While keeping your home might not always be possible, an Attorney can increase your odds of success, and help you minimize the negative impact if you do end up losing your home. Many borrowers are unaware that they have certain rights and protections under state and federal law. Most attorneys are well aware of these protections, and will inform homeowners of their legal rights. Therefore, not only will we inform you of your rights, but we will also help you defend them.
At O’Bryan Law Offices, we’re highly passionate and skillfully successful when it comes to helping Kentucky and Indiana residents file bankruptcy. We understand that most people hear bankruptcy and imagine it as something they never want to resort to. However, our experienced attorneys know that it is simply a legal option for debtors to discharge their debts. Chapter 7 and Chapter 13 filings can and often do help those who are drowning in debt a helping hand. Thankfully, borrowers have a few options for avoiding a foreclosure complaint (and subsequent foreclosure auction).
Asking for discovery or a jury trial may postpone the matter for much longer. You do need to decide however at the start of the case do you want to litigate and delay or negotiate and save the home. Our experienced bankruptcy attorneys at O’Bryan Law Offices can help you choose the best option for your situation. We’ve helped many clients in the Louisville area save their homes and start fresh. Filing for Chapter 13 bankruptcy may increase your opportunities to keep your home, but you must be able to afford your monthly mortgage payments after bankruptcy.
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Unpaid medical bills, high credit card APRs, garnishments, and judgment liens can destroy your financial status and cause extreme emotional distress. I opened the door to a Kentucky Solutions agent who offered to help. We completed the paperwork and Kentucky Solutions did all of the rest. They saved us from the devastating effect of foreclosure buy doing a Short Sale and buying our house even after we had filed bankruptcy on the house. I highly recommend Kentucky Solutions as your go-to guys for foreclosure prevention.
Kentucky is a judicial foreclosure state, meaning that most, if not all, foreclosures go through the courts. If you miss just one mortgage payment, you are considered to be in default on your loan. The time for a foreclosure in Kentucky varies from county to county, but loan servicers usually wait 120 days after the homeowner fails to make mortgage payments before starting foreclosure proceedings. If the house must go back, the homeowner typically wants to defend the action to gain time by hiring a foreclosure lawyer to file an answer to the lawsuit. Discovery should follow no more than two months after the answer. Finally, the debtor may need to file a Chapter 7 bankruptcy to avoid a deficiency judgment and income tax debt.
You should consult a Lawyer in Louisville, Kentucky to find out if this is the case here. At the sale, the purchaser makes a deposit, and the Commissioner files a report with the judge, asking for approval of the sale. Defendant continues to possess the home until the purchase is complete and the master commissioner issues a deed. After the sale, the master commissioner will pay his fees, and the property taxes, and the remaining funds will go to the creditors in the rank of priority. Funds first go to property taxes, second to mortgages, third to judgment liens, and the remainder to the homeowner. The first thing you need to know about the Kentucky foreclosure process is that foreclosures in Kentucky are court-ordered sales conducted by the circuit court master commissioner.
Doing so will not make it go away, and will probably make it worse. You should stay in close contact with your bank, and be forthright with them. It is necessary to remember that the bank does not really want your Louisville house – they expected to make a profit through the interest on your loan, and that’s what they’d prefer to do. Accordingly, they will probably make reasonable accommodations to your financial situation if it means that you will be able to make some form of payment to them.
Filing an answer delays the foreclosure sale for about six months or longer. Filing discovery often delays the foreclosure for another six months or longer. Please note the Defendant homeowner must file discovery within two months after the answer. Together, an answer and discovery often delay the foreclosure sale for a least a year. Filing a Chapter 7 or 13 after that will delay it another six months.
The lender could also extend the length of the term, or hold monthly payments to a designated percentage of the household income. This effectively stops all creditors and debt collectors from attempting to collect from you during the bankruptcy process, and also stops foreclosure proceedings. Once you have received the notice, a sheriff’s office representative or a process server will deliver a summons to you in person at your home. If you don’t, the lender will simply place a public notice in the newspaper. Find your loan documents (mortgage and note) and read them so you know what your lender may do if you can’t make your payments. They have options to help homeowners through hard financial times.
“Individuals who file experience a sharp boost in their credit score after bankruptcy, whereas the recovery in credit score is much lower for individuals who do not file for bankruptcy.” Take the debtor education class after filing bankruptcy to get the discharge from creditors and become debt free. We provide free legal advice and representation for low-income, disabled, and elderly clients in legal crises that threaten self-sufficiency or quality of life. Our team of fully certified, legal professionals represents low-income, disabled, and elderly clients in legal crises that threaten self-sufficiency or quality of life. Kentucky Legal Aid is responsible for providing legal services to 35 counties.
Lawyers with longer memberships tend to have more experience so we use the Membership date to help prioritize lawyer listings on search pages. Assets can be things like a second car that has been paid off or jewelry. If you sell them, you could use the cash to help reinstate your loan. Even if these efforts don’t significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home. In Kentucky, lenders and judicial liens foreclose on homes in Circuit Court. Interestingly, other states use a deed of trust to foreclose a home.