New Jersey bankruptcy lawyer, Robert Manchel, successfully defended another mortgage company’s bankruptcy court request to proceed with the mortgage foreclosure action and sheriff’s sale of a New Jersey resident’s home.
New Jersey residents considering filing for bankruptcy can obtain additional answers to questions regarding foreclosure resolution and bankruptcy laws by calling our offices.
Chapter 13 bankruptcy is designed to stop a foreclosure action and allow an individual to save their home. This requires the debtor to cure the pre-bankruptcy mortgage arrears by paying the arrears through monthly trustee payments over a 36 to 60 month period. In addition to the trustee payments, the homeowner is required to pay the monthly mortgage payments, directly, to the mortgage company, on a timely basis.
Like all families, NJ bankruptcy debtors may be required to pay for unexpected expenses, such as auto repairs, various homeowner repairs, health care costs, and such. These expenses may result in the debtor’s inability to make mortgage payments. During a 36 to 60 month chapter 13 bankruptcy plan, the debtor may experience a number of mortgage defaults. Unfortunately, the mortgage companies are not very forgiving about these after filing mortgage defaults.
Generally, after the default has extended for two to three months, the mortgage company will file a court document called a “Motion for Relief from the Automatic Stay”, which requests permission to proceed with the foreclosure action and sheriff’s sale. Robert Manchel, an experienced New Jersey attorney, who specializes in bankruptcy law, has successfully defended and settled numerous motions of this kind. Typically, Mr. Manchel’s settlements permit the New Jersey debtor to cure the after filing mortgage arrears over a certain time period, depending on the specific facts of each case.
Any subsequent mortgage default after the aforementioned settlement, may result in the mortgage company, again, requesting court permission to proceed with the foreclosure action. The document filed by the mortgage company requesting the same relief for a subsequent default is called a ” Certification of Default and Request for Relief from the Automatic Stay”. Robert Manchel, has successfully settled and defended before the court numerous Certifications of Default.
Recently, a mortgage company filed with the court the second Certification of Default against Mr. Manchel’s New Jersey clients, who are parents of three children. The mortgage company was unwilling to resolve the issue. Therefore, it was necessary to present the matter before a bankruptcy judge. Mr. Manchel successfully argued the matter before the court, which resulted in the judge denying the mortgage company’s request and allowing the clients to cure the arrears over the balance of their 60 month plan.
Robert Manchel is a New Jersey, Board Certified Consumer Bankruptcy Attorney, whose practice is limited to foreclosure resolution and bankruptcy law. For more information, please contact Mr. Manchel at (856) 797-1500, 1(866) -503-5655.