The 24-Hour Difference in Bankruptcy in Indiana

August 4, 2013 12:14 pm Published by

When some wise man said “Timing is everything”, he sure wasn’t kidding. Any Indiana debt consolidation lawyers can bear witness to the importance of timing when it comes to filing personal bankruptcy in Indiana.

And, when it comes to saving a home from foreclosure through Chapter 13 bankruptcy law, timing becomes more important than ever.  Here’s why:

One basic step in the bankruptcy process is pre-petition credit counseling. The rule is that debtors must seek credit counseling at least 24 hours prior to filing bankruptcy. All of the clients who work with me or with my associates the Anderson, Bloomington, Indianapolis, or Columbus bankruptcy lawyers who work in the Mark Zuckerberg bankruptcy law offices are helped through the credit counseling process in timely fashion – except if they are on a smaller than 24-hour deadline to save their home!

Unfortunately, clients “missing the deadline” is something that has been happening all too frequently lately, especially when mortgage modifications are involved. Here’s the sad sequence of events I’m seeing far too often:

  1. You got behind on your mortgage payments.
     
  2. You received a notice from your mortgage service company asking you to contact them.
     
  3. You were unable to get straight answers when you call.
     
  4. You sent in all the documents they requested, but your lender lost your paperwork, asking you to start from scratch.
     
  5. You kept waiting for things to straighten out, and now you learn the sheriff’s sale is going to happen in a day or two.
     
  6. You realize that what you kept trying to avoid is the only way to save your home, namely filing individual bankruptcy in Indiana.
     
  7. You show up at one of the Zuckerberg bankruptcy law offices to request help to stop the foreclosure. (It’s late afternoon or evening time, because you had to work and this is the only time you have to come in.) Or maybe, you’re even meeting with us
     
  8. We know exactly what needs to be done.  We’ve done this thousands and thousands of times, using Chapter 13 bankruptcy law to save homes.
     
  9. But….it’s Thursday evening already. We take you through the accredited credit counseling course. Problem is, by the time 24 hours have passed, the court is closed and papers can’t be filed until the next Monday.  The sheriff’s sale – it’s set for Saturday….


Now the only remaining option is bankruptcy Chapter 7 in Indiana. Issue with that – it doesn’t preserve the home.  If the goal is to help stop foreclosure, only Chapter 13 does that.

Should you try mortgage modification?  Certainly. But, while you’re talking to your lender about a “mod” and going through all that back-and-forth about the paperwork, you could have had the bankruptcy paperwork all filled out and ready to go…just in case. Foreclosure is an area where a stitch in time – could save your home!

 

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This post was written by Mark Zuckerberg

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