One area of chapter 7 bankruptcy that seems to confuse people is that even though they have filed chapter 7 and did not reaffirm the debt to the mortgage company, meaning they surrendered their home, they still get notice of a foreclosure proceeding. Once they get notice of this foreclosure, the debtor (the person who filed bankruptcy) immediately believes that their attorney may have done something wrong because they discharged that debt. This process has to happen in order for the bank or mortgage company to gain ownership over the property. This has nothing to do with the debtor at this point. Some mortgage companies work faster than others, and the discharge may not have been filed yet, so there is a Request for Relief From Stay, meaning they want to move forward with the foreclosure law suit and since the debtor is technically still the owner of the home, they will get served on the law suit and request for relief, and again they get nervous. This is all typical and should be explained to you as to what will happen in the next few weeks.
The unknown becomes very scary, so it is important to have an experienced attorney who can walk you through the process and advise you as to what to expect before you file, after you file, during the process and at the conclusion of the process. Here at Schwam-Wilcox & Associates we are strong believers in the phrase Knowledge is Power. We like to give our clients the knowledge to know exactly what is happening in their case, how the stages of their case will or will not affect them or the outcome of their case, so the fear of the unknown is diminished.
For more information on filing a chapter 7 (or chapter 13) bankruptcy you can contact us. You can have a 30 minute complimentary consultation with an attorney to see if bankruptcy is right for you and your family.