Denver, Colorado, Personal Bankruptcy and Foreclosure Lawyers
SHARON W. GROSSENBACH, Attorneys at Law

If you are facing home foreclosure and are struggling to pay your bills on a regular monthly basis, bankruptcy may be right for you. Filing bankruptcy stops all foreclosure actions, buying you time to reorganize or eliminate some debt and catch up on mortgage payments.

Since 1977, the law office of Sharon W. Grossenbach, Attorneys at Law, has worked exclusively in consumer bankruptcy law. Our skilled and experienced lawyers and staff will take time to explain to you the effect bankruptcy has on foreclosure. We will work with you to determine if filing bankruptcy is the best debt relief option for your situation.If you are able to afford your regular monthly expenses and current mortgage payment, but are unable to catch up on past due missed payments (arrears), then Chapter 13 may be a good option. A Chapter 13 will allow you pay back the arrears on your terms, as opposed to the mortgage company's.

Contact our Denver bankruptcy attorneys today for a free initial consultation.

How Does Bankruptcy Help Avoid Foreclosure?

Both Chapter 7 and Chapter 13 bankruptcy stops foreclosure actions. However, a Chapter 7 will only delay the sale temporarily, which allows some additional time to move, sell, or possibly refinance. It will not allow you to stay in the property unless you are able to cure all arrears immediately (within less than 30 days approximately).

Under Chapter 13, a person reorganizes debt and develops a three to five year repayment plan. Under Chapter 13, most unsecured debts (such as credit cards, medical bills, or any other debt for which there is no collateral) are reduced or eliminated, which allows your income to go to secured and priority obligations. Hopefully by reducing unsecured monthly expenses there will be enough income to allow the person to pay the regular mortgage payment and pay back the arrears in no more than five years. The debtor has up to five years to catch up on missed mortgage payments through the chapter 13 plan. This is much more time than most mortgage companies will offer through loss mitigation.

It is important to be prepared to file for bankruptcy before any pending home foreclosure sale. Waiting too long ¾ such as waiting until just weeks before the sale of your home ¾ may prevent you from being able to reorganize debt in time. Our experienced bankruptcy lawyers and staff will you help you decide when to file personal bankruptcy?. So once again, if you intend or wish to stop a pending foreclosure sale and save the property through bankruptcy, you MUST FILE prior to the actual sale. This means that to be safe you should contact us at least one month before the sale date to ensure you will be able to file (if necessary).

Negotiating Debt

If you are working with a mortgage company to reduce mortgage payments or extend the loan, please continue to do so. It is always best to avoid bankruptcy if you can. However, you should have bankruptcy in mind and potentially be ready to file if necessary, because mortgage companies are not on your side. They may stall the process as long as possible, putting you at greater risk for losing your house. If you are currently in the process of negotiating with your mortgage company for loss mitigation or a loan modification, and you have a foreclosure sale date approaching, you should still consider and potentially be ready to file bankruptcy. Should the mortgage company not approve the loan modification or loss mitigation agreement, it will proceed to sale with little or no additional notice to you. Often you will not get a decision until your sale date is imminent, at which point it may be too late for us to assist you.

Contact a Personal Bankruptcy Lawyer

Filing bankruptcy can allow you to avoid foreclosure and keep your home. It gives you more control over your financial situation. To learn more about how this process works, please contact us today at Sharon W. Gorssenbach, Attorneys at Law, to schedule a free consultation.