Foreclosure sales are back in full swing in 2023 after a hiatus due to the COVID moratorium which recently ended.
As an experienced Middlesex County bankruptcy attorney, I get many panicked calls from homeowners facing the imminent loss of their houses in foreclosure sales. Typically they have already used their statutory postponements and the sheriffs sale is a few days away. In such cases, because of time constraints, we may file a minimal Chapter 13 bankruptcy petition to stop the sale.
In order to file, our client must complete a credit counseling course and provide the certificate of that to our office. That is mandatory, and must be sent to the court with the filing of the case.
Also it is necessary for our client to come in to review and sign the petition and related documents so that the petition can be filed with the bankruptcy court to start the case.
Once the petition is filed, we provide proof of that filing to the sheriffs office handling the sale (typically by fax with proof of receipt) so that our client’s sale can be removed from the list. I will also check on the county sheriff website afterward to confirm that the sale has been canceled.
The bankruptcy filing creates an automatic stay under the Federal bankruptcy code which stops all creditors from acting against the filer. This of course includes any sheriffs sale.
If you are in the hectic, anxious position of losing your home in a week or two, please call us for immediate and competent action to stop the sale and save your home. I have been serving the Middlesex County homeowner community for more than 30 years. Initial consultations are free so call today!