Bankruptcy & Foreclosure Definition Of Terms

Chapter 7 - A Chapter 7 bankruptcy case will allow the "discharge" or the legal forgiveness of non-mortgage unsecured debt such as credit card debt, personal loans and medical bills.

Chapter 11 - A Chapter 11 reorganization case requires the debtor to offer a plan of reorganization, which extends, and in some instances, reduces many of the debtor's obligations.

Chapter 13 - A Chapter 13 bankruptcy case is often used to stop the foreclosure process, including foreclosure sales, with the goal of curing mortgage arrears over a designated period of time.

Creditor Negotiations - These types of agreements are difficult to obtain and representation by our office can increase your ability to obtain such an agreement.

Deed in Lieu - The agreement needs to be negotiated so that the written settlement document clearly explains its terms and protects your rights.

Foreclosure Litigation Defense - You need to exercise your right to assert any defenses regarding either the foreclosure proceeding or any other issues that involve the mortgage. Defending the foreclosure action allows you the opportunity to assert any defenses, either technical or substantive, involving the foreclosure proceeding, the mortgage holder's conduct and/or any issues that involve the mortgage itself. Legal defenses can delay the foreclosure proceeding and allow more time to explore alternative solutions, and potentially threaten the dismissal of the foreclosure action.

Litigation Defense - Gives the client and our firm notice as to the status of the foreclosure proceeding and prolongs the proceeding. In some instances a client may have a strong defense, which may cause a foreclosure action to be dismissed.

Negotiation/Modification - Negotiated settlement allows a prompt resolution of the foreclosure process. The agreement needs to be negotiated so that the written settlement document clearly explains its terms and protects your rights.

Orders To Show Cause- Orders to Show Cause are emergency motions and can be pursued in both state court (the Supreme Court of New York ) and federal court (the United States Bankruptcy Court).

Voluntary Sale (or Short Sale) - If the client has equity in the property and cannot afford the regular payments necessary to retain the property, a voluntary sale, pursuant to a contract of sale, is often a solution. If a homeowner has decided that their best option is to voluntarily sell their property, a voluntary sale can save for the client the equity in the property which would be realized upon such a voluntary sale.

Payment Plan or Refinancing - Although it is difficult to consider refinancing as an option at the time of a foreclosure action, it is not impossible. In appropriate situations, such as in conjunction with the filing of a Chapter 13 case, it may be possible to consider the benefits of refinancing.