Can the Foreclosure Process on a Rental Property be Stopped by Filing a Chapter 13 Bankruptcy?

Where foreclosures on rental properties are concerned, you can stop the foreclosure process by filing a Chapter 13 Bankruptcy. The legal firm of Clark & Washington is Mid-Florida’s largest bankruptcy filer and has the most experienced Bankruptcy Attorneys that you will find anywhere in the state of Florida. We are well versed at handling bankruptcy and foreclosure cases, so if you are going through the foreclosure process on your rental property, we will most likely be able to help you with your current situation.

We can stop the foreclosure process on any type of property – whether personal or rental. Once your Chapter 13 is filed, the automatic stay goes into effect immediately so that you do not have your property sold out from under you. Any foreclosure will be halted immediately once the filing is completed. However, you should be aware of the fact that foreclosures on rental properties do carry some additional challenges.

The bankruptcy trustee that is assigned to your case will normally take a position of the personal financial reorganization of the Chapter 13 guidelines which is designed to enable you to keep all property that is deemed necessary and reasonable. There is a certain degree of speculation involved with rental properties as there are many things involved in the rental property business. There are numerous issues that can impact the scenario, including the following:

• Tenants come and go, oftentimes without any warning
• Trends in the rental industry may force leases and rents to be decreased
• You may have to pay for expensive repairs

All of these can have a negative impact on your financial well-being when you have invested in rental properties. Where the Florida foreclosure process is concerned, the Chapter 13 trustee will most likely take a position wherein your repayment plan will need to provide 100% (or nearly 100%) of the payments you make to your other applicable creditors. That trustee will take the attitude that they are not going to ask any of your other creditors to assist you in subsidizing any of your real estate investments.

In any case, Clark & Washington Orlando Bankruptcy Attorneys can help you with your Chapter 13 and protecting your rental properties. Please feel free to contact us at (407) 898-0299 with any questions you may have regarding your current circumstances. Or you can fill out the confidential contact form found on this website.