Q: Will filing chapter 11 bankruptcy stop my foreclosure sale?
A: Yes*. The automatic stay of bankruptcy provides a period of time in which all judgments, collection activities, foreclosures, and repossessions of property are suspended and may not be pursued by the creditors on any debt or claim that arose before the filing of the bankruptcy petition. The automatic stay provides a breathing spell for the debtor, during which negotiations can take place to try to resolve the difficulties in the debtor’s financial situation. After the case is filed, the foreclosing lender must immediately either cancel or postpone the foreclosure sale.
*There are rare situations in which the automatic stay would not come into effect upon the filing of a bankruptcy case, such as in the case of recent repeat bankruptcy filings or prior orders in bankruptcy cases affecting the automatic stay. Contact us directly with any questions.
Q: How quickly can I file Chapter 11 bankruptcy with your firm?
A: We can file cases very quickly when needed. Strategy and preparation are very important for the success of Chapter 11 cases so please contact us as quickly as possible to discuss timelines.
Q: What are the fees for a Chapter 11 case?
A: The courts are required to charge a $1,717 case filing fee upon the filing of the case. Attorney fees vary depending on the type of case, please contact us to discuss your potential case and we can provide estimates of fees, as well as expected timelines for your case.
Q: What Is A Single Asset Real Estate (“SARE”) Debtor?
A: Single asset real estate (“SARE”) debtors are normally LLCs or other entities whose primary (and often only) asset is a “single property or project” that generates all or substantially all of the income for the business. A common example is a house that has been put into an LLC. Filing a chapter 11 bankruptcy case for a SARE debtor can allow direct negotiation with the lienholders, and can often provide solutions for properties that are in the process of foreclosure by allowing either the restructure of the current loan, refinance with another lender, or allowing time to sell the property for maximum value. Our firm handles many SARE cases and can discuss strategies and solutions. Please contact us today if you have a potential SARE case.