Bankruptcy, Divorce, and Extension on Notice of Defaults

July 26, 2010 - PRLog -- Divorce is the number one reason why people file a bankruptcy and it is the number one reason you should file. Your income to pay the bills you have is now cut in half. Then the need for the divorce attorney. The need for a separate place more furniture and so on.
If a bankruptcy is coming should you file together before the divorce? For some that will not happen if you two can not be in the same room anymore you can’t make it work. To do a bankruptcy you have to be able to work together. So putting those people to the side, Because of the add expense’s of the separate place and so on the two of you might now qualify under the new bankruptcy law. This would be the time to get rid of the credit cards, cars, and maybe even the home that neither one of you want. This way you two can start a new life on the income you now have. So if you can really work together to make this happen It will reduce you cost in half to file the chapter 7. Never file a chapter 13 together if the divorce is coming. The best thing would be to have two separate plans to keep what you each want.

Many people who go through bankruptcy go through a process of a Motion to lift the automatic stay. Once they have an agreement with them and the mortgage company, they have to make sure that they make their payments on time on the first of the month. There are no more grace periods to make the payments. If you get two months behind again to the mortgage company after you have an agreement with them, then they send you out a notice of default. Once you receive this, you have to cure the default by the due date that is stated on the notice of default. If you fail to cure the default they can proceed to lift the stay and the foreclosure process begins.

I understand that they don’t give you a lot of time to get this cured. It is typically 10 days from the date of the letter and sometimes an additional 3 days for mail time. You know you can make the payment, but need a little time. Most mortgage companies will grant an extension, but it will only be about a week. It is very important that you do what you can to get the money in there by the extension date. If you need more time on top of that, it will be difficult to accomplish this, because they have already allowed you more time and another payment will be coming due.

If you find you’re self in a position, where you can’t make the payment by the deadline or the extension deadline, you will want to start making arrangements to move or to speak with the mortgage companies’ loss mitigations department to help you keep your home. Please contact your attorney’s office with any questions that you may have.

For more information visit http://www.bankrupcy-alternative.com/aftermath.html or call us directly. Here is another bankruptcy article http://www.prlog.org/10817940-bankruptcy-question-should-... and here is another http://www.prlog.org/10811588-bankruptcy-what-is-worse-an... for your reading enjoyment.

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