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    #1

    Chapter 7/Foreclosure

    Hello all...

    This board helped me SO MUCH when I went through chapter 7 18 months ago. So I come back with a question:

    My friend has gone through foreclosure, and after the foreclosure was granted in 2003 she worked out a forebearance agreement with the mortgage company. When that failed, she tried chapter 13, but the repayment plan was a bit more than she could swing and it ended up being dismissed after a year.

    The mortgage company obviously went through with the foreclosure sale which was last week, and it is set to be confirmed in early May. No matter what, she will be filing Chapter 7 on her remaining debts. So the question is: seeing that the foreclosure sale has already occured, but not yet confirmed (i.e. she has not been served with notice she needs to vacate, etc.) *if* she files Chapter 7 will the automatic stay be enforced allowing her 60 more days+ in her home? Or is it beyond that point now?

    FYI: This is Wisconsin.

    She is no longer fighting for the house and has no dreams of saving it...but when she moves it will be back to where her family is, and she does want her kids to stay in their school until the end of the school year is at all possible.

    Thank you all
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    #2
    Chances are, filing a Ch 7 at this point might not buy your friend more than a month total. Maybe just up to the 341. Maybe not even that long.

    I should rephrase,............

    You friend will file BK. Generally Lenders are notified within a week of filing. 2 tops. Maybe faster if Electronic Notification is the Lender's preferred means of contact.

    The Lender will file a Motion to Lift Stay. There will be a hearing. The motion will probably be granted. So most MTLS's hearings are held right around or shortly after the 341 Meeting.

    Gives the Debtor/Filer about another month more than they would have had otherwise. And then the Foreclosure action proceeds as usual if the Motion is granted.
    Filed Ch 7 - 09/06
    Discharged - 12/2006
    Officially Declared No Asset - 03/2007
    Closed - 04/2007

    I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

    Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

    Comment

      #3
      Thank you Sinking Fast...

      In all honesty, that 4 weeks or so is all she's after. If she can stay in the area until mid-June, it keeps her kids in the schools without having to worry about where they will be living.

      I just wasn't sure if the automatic stay applies *after* a foreclosure SALE has taken place...I know it does before, but this isn't covered in any of the google searches I tried

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