If you’re facing foreclosure in Buffalo, the answer is yes: bankruptcy can often provide legal protections that can stop foreclosure proceedings and give you time to catch up on missed mortgage payments. When you file for bankruptcy, the automatic stay immediately halts all collection actions, including foreclosure sales. This protection applies whether you’re one payment behind or several months in arrears.
However, the type of bankruptcy you file and your specific circumstances determine whether you can keep your home long-term or simply delay the inevitable. Working with an experienced Buffalo bankruptcy lawyer helps you evaluate your options, determine which bankruptcy chapter best protects your home, and create a realistic plan for maintaining your mortgage payments going forward.
Contact Consumer Law Attorneys to discuss your foreclosure and potential bankruptcy options today.
How Foreclosure Works in New York State
New York is a judicial foreclosure state, meaning lenders must file a lawsuit and obtain a court judgment before selling your home. This process typically takes 12 to 18 months from the first missed payment to the foreclosure sale, though it can extend longer depending on court backlogs and your response to the lawsuit.
Even after a judgment, you have time before the actual sale. This extended timeline gives homeowners opportunities to stop foreclosure in Buffalo, NY, through bankruptcy or other legal means.
Understanding where you are in the foreclosure process helps determine the best strategy. A Buffalo bankruptcy lawyer can assess your timeline and recommend immediate action to protect your home.
Using Chapter 13 to Prevent Foreclosure
Chapter 13 bankruptcy is the most effective tool to stop foreclosure Buffalo, NY homeowners face when they want to keep their property. Unlike Chapter 7, which provides only temporary relief, Chapter 13 allows you to cure mortgage arrears over time while making current payments.
When you file under Chapter 13, the automatic stay immediately stops all foreclosure proceedings, even if a sale is scheduled for the next day. The foreclosure lawsuit is stayed, and your lender cannot proceed without court permission. This gives you breathing room to reorganize your finances and propose a repayment plan.
Chapter 13 foreclosure Buffalo cases involve creating a three- to five-year repayment plan that includes catching up on missed mortgage payments. The repayment plan prioritizes your mortgage arrears as a secured debt, ensuring you address the delinquency systematically. At the end of the plan period, if you’ve made all payments as required, remaining eligible unsecured debts are discharged, and your mortgage is current.
Chapter 13 also addresses second mortgages and home equity lines in certain circumstances. If your home’s value is less than what you owe on your first mortgage, you may be able to "strip off" the second mortgage, treating it as unsecured debt. This significantly reduces your monthly housing costs and makes keeping your home more affordable.
Your Buffalo bankruptcy lawyer will determine whether you qualify for Chapter 13 bankruptcy and create a plan for the bankruptcy court to confirm.
When Chapter 7 Might Still Help
While Chapter 13 is the primary tool to stop foreclosure Buffalo NY homeowners use for long-term protection, Chapter 7 bankruptcy can provide temporary relief in specific situations.
Chapter 7 triggers the automatic stay just like Chapter 13, immediately halting foreclosure proceedings when you file. This gives you typically 60 to 120 days of breathing room, depending on how quickly your lender moves to lift the stay. If you’re very close to catching up on payments, negotiating a modification, or selling your property, this temporary relief might be sufficient.
Some Buffalo homeowners use Chapter 7 strategically to discharge unsecured debts while working out a loan modification with their lender. Reducing your overall debt burden makes you a more attractive candidate for modification programs. However, this strategy requires careful timing and coordination with your lender and foreclosure attorney.
Legal Protections Available to Buffalo Homeowners
Beyond bankruptcy, Buffalo homeowners facing foreclosure have other legal protections under New York law, including:
- Mandatory settlement conference to negotiate loan modifications, repayment plans, or other alternatives to foreclosure.
- Raising defenses to foreclosure, including improper servicing, predatory lending, or failure to follow proper procedures, that can delay foreclosure and potentially result in dismissal of the case or favorable settlement terms.
- Protections under the SCRA (Servicemembers Civil Relief Act) for active-duty military members, including restrictions on foreclosure and interest rate reductions.
- New York also offers various state programs assisting homeowners facing financial hardship.
A Buffalo bankruptcy lawyer can identify which protections apply to your situation and whether bankruptcy offers the strongest path to keeping your home. Sometimes, combining bankruptcy with other legal strategies provides the most comprehensive protection.
Speak with a Buffalo Bankruptcy Lawyer Today
If you’re facing foreclosure in Buffalo, time is critical. The sooner you act, the more options you have to protect your home. Consumer Law Attorneys offers free consultations to Buffalo homeowners considering bankruptcy as a solution to stop foreclosure Buffalo, NY.
Our attorneys understand the Buffalo foreclosure process and work regularly with local bankruptcy courts and trustees. We know how to create confirmable Chapter 13 plans that satisfy court requirements while remaining affordable for you.
Don’t wait until the day before your foreclosure sale. Contact Consumer Law Attorneys today to schedule your free consultation with a knowledgeable Buffalo bankruptcy lawyer and take the first step toward protecting your home.
