Can I avoid foreclosure?

What you need to do is file for chapter 7 bankruptcy as soon as possible. Even if you file just the basic documents, you will have time to complete the entire petition later, although it's only a few days. A chapter 7 bankruptcy will do two things your situation. First of all the automatic stay will stop your bank from foreclosing on your property and give you enough time to sell your house. Even after your bankruptcy has been discharged, the bank does not usually stop foreclosure proceedings right afterwards. This allow you to have enough time to complete a sale of your home. Simply because you file bankruptcy on your home, does not automatically give it to the bank. They still have to go through all the foreclosure proceedings to take your home. There should be more than enough time to get the home sold, and pay the bank off even after bankruptcy. Even though the debt is discharged, you will still need to pay the bank from the sale of the property, since they have a security interest in the property. The second important thing a chapter 7 bankruptcy will do for you in this situation is to not make you liable for any deficiency between the sale price and the mortgage still on the property. If you do not file bankruptcy before the foreclosure, the bank does not need to go after you for the delinquency, they can simply report as a loss to the IRS. The problem with this is if they reported to the IRS as a loss on their and the IRS will charge you as income for the calendar year of the foreclosure. Meaning if your house has a mortgage for $200,000 and the bank sells it at foreclosure sale for $100,000, you have delinquency of $100,000. If the bank reports this as a loss, the IRS will consider you made $100,000 in that calendar year in you will be forced to pay the taxes as if you made an extra $100,000 over your usual income. I suggest you file chapter 7 bankruptcy as soon as possible, it must be filed before the actual sale takes place. I have responded to your inquiry according to the laws of Massachusetts, where my firm is located. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options. Email messages/Online Correspondence are akin to conversations and do not reflect the level of analysis applied to formal legal opinions. Email/Online responses do not form an attorney-client relationship.    Joseph F. Botelho, Esq. BOTELHO LAW GROUP Attorneys At Law http://fallriverbankruptcyattorney.com/ 901 Eastern Ave.  Unit 2 Fall River, MA 02723  Office:  888-269-0688 FAX:    877-475-8147 #bankruptcy  #lawyer  #FallRiver  #Chapter7  #chapter13  #debt  #debtsettlement  #foreclosure  #attorney   #cantpaybills  #lawsuit  #court  #bankruptcycourt  #eviction  #lostmyjob