Stopping Foreclosure: Filing for Bankruptcy Without a Lawyer
Thank you for listening to this podcast. In this episode, I will discuss the foreclosure process, including issues with the automatic stay and filing for Chapter 7 or Chapter 13 bankruptcy to obtain the Suggestion of Bankruptcy.
First and foremost, thank you for continuing to read my blogs, watch my videos, and listen to my podcasts.
So, let’s talk about how to stop the foreclosure process. I’m sure you have seen online that bankruptcy will stop foreclosure, but what is the actual process? What has to be done once the bankruptcy petition has been filed? Is filing for bankruptcy enough?
The Automatic Stay Explained
The automatic stay is nice and straightforward. Once you file the bankruptcy petition, the automatic state kicks in, and this “automatically” prevents most lawsuits from moving forward. So it’s automatic; we’re done, right? Go home. Kick up your feet and enjoy that cold beer and perfect cigar. No, it’s not that simple—a few steps are required. But let’s call them baby steps as you can handle this.
The automatic stay applies to Chapter 7 and Chapter 13 bankruptcy. But, one significant difference is time. With Chapter 7 bankruptcy, you will get some time. However, to save your home, you should file a Chapter 13 bankruptcy. Chapter 7 will never save your home if you’re behind on the mortgage payments.
Even if you’re behind one month and Chapter 7 will be filed, immediately let your bankruptcy lawyer know. If your lawyer is honest, rather than push you to Chapter 13, your lawyer should recommend you catch up with your mortgage and then file Chapter 7 bankruptcy.
When Can You File Bankruptcy to Stop Foreclosure?
Did you know you can file for bankruptcy on the day of the foreclosure? I don’t recommend it; it’s not fun. It’s a great way to have your blood pressure skyrocket. If you wear a smartwatch, your watch will start beeping, letting you know your pulse is 110 beats per minute, but it could be done legally. There’s no rule prohibiting it.
What to Do After the Bankruptcy Petition Was Filed
Once bankruptcy has been filed, the next step is to notify the creditor or the attorneys representing the bank. While major creditors will receive notice via electronic filing, that doesn’t mean notice gets sent to the foreclosure attorney immediately.
Now, I understand things happened, and while everything was filed timely, the foreclosure sale went through. What happens next? Could that be reversed? Yes. I’ve been in that situation. It’s not fun. The assigned judge was out of town, and the emergency judge didn’t want to sign the order. There was no reasoning or explanation on behalf of the judge other than, I’ll guess, incompetence.
However, luckily, I bumped into a bailiff I knew from family court of another judge, and he asked why I was in civil court. Two minutes later, I had my order. But you see all the hoops I had to go through, so imagine if you are self-represented.
So, to keep your blood pressure in check, file for bankruptcy early, preferably a day or two in advance. Be at the courthouse at 8:00 a.m. Once the foreclosure judge’s office opens, make sure to provide your filing of the Suggestion of Bankruptcy. Depending on your county, sometimes there’s a separate foreclosure division that handles canceling foreclosure sales.
But now you know how the automatic stay isn’t automatic in a sense because the Suggestion of Bankruptcy has to be filed in state court where the foreclosure is pending. How is that done?
Filing the Suggestion of Bankruptcy
Suppose you’re filing for bankruptcy without a lawyer. In that case, we typically have a pleading called “Notice of Filing” or something similar, where it’s a template and has the typical motion heading of “Comes now the undersigned, etc. and hereby files this Suggestion of Bankruptcy.” Additional facts, such as the date and time the bankruptcy petition was filed, are listed.
Of course, I’ve often seen lawyers in foreclosure court stating that a motion was filed and they are seeking relief. Unfortunately, that shows me the lawyer doesn’t understand that the automatic stay doesn’t require a formal motion and hearing.
Remember, this is federal court. The U.S. Constitution is known as the supreme law of the land. We have the nine justices who make up what? The Supreme Court. See the connection? The Supremacy Clause, as it is known, means that once the Supreme Court issues a ruling, all the other states have to abide by that ruling.
Bankruptcy is part of the federal court system, so state court proceedings automatically stop once bankruptcy is filed. But the term automatic doesn’t mean every creditor knows what’s going on. That’s why you have to file the Suggestion of Bankruptcy.
When I see lawyers arguing their motions, that reveals their inexperience because you don’t need to argue a motion. All that has to be proven is that bankruptcy was filed.
When you file for bankruptcy, if you’re using PACER.GOV, there’s a section where you can get the Suggestion of Bankruptcy. In the worst-case scenario, you could always get a certified copy from the bankruptcy clerk.
Some courts will require a certified copy, so make sure to know the judge’s preference. Hopefully, the bankruptcy court will be near the state court, like in larger cities like Miami-Dade, Broward, and Palm Beach.
What to Do When Short on Time to File for Bankruptcy and Need the Suggestion of Bankruptcy
Time, there’s never enough of it. So, how do you handle the time issue when the foreclosure is tomorrow? You won’t be able to complete the bankruptcy petition so quickly. The same may apply to the bankruptcy lawyer. So what happens next?
Well, you don’t need to file the completed bankruptcy petition. Bankruptcy attorneys call that a bare-bones or skeleton petition. There’s not much meat on those bones. You can read more about a bare-bones petition via this link.
The requirements, such as name, address, Social Security, etc, can be completed. Then, include the main creditor. In this case, the mortgage lender. The rest can be filed later, or the bankruptcy lawyer can handle it. At least you got that out of the way and stopped the foreclosure.
Now, the bankruptcy clerk will file a “deficiency notice,” and if that isn’t complied with, your case will be dismissed. But you have ten days, so that’s more than enough time to provide the missing bankruptcy petition schedules.
So now you know what steps to take besides depending solely on the automatic stay. Remember, it applies to both Chapter 7 and Chapter 13 bankruptcy.
I hope this helps you better understand the process of the steps to take after bankruptcy is filed. Good luck with your bankruptcy case and your path to financial freedom.
Colleges and universities can purchase my bankruptcy law textbook directly from Routledge Publishing. For paralegals and students buying single copies, you can do so via Amazon Books. To access my YouTube channel, click this link. You can also listen to my podcast on Spotify.
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Please note that the information on this site does not constitute legal advice and should be considered for informational purposes only.
Updated on April 8, 2025.
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