Bankruptcy Stops Foreclosure

Are creditors threatening to take your money or property? If you are facing harassing collectors, lawsuits, garnishment, repossession, or foreclosure, the attorneys at Cohen and Cohen can stop these with a bankruptcy. A bankruptcy will immediately put in place the automatic stay.

The automatic stay is a provision found in U.S. Bankruptcy Code under 11 U.S.C. §362 that protects you and your property from being taken by creditors. Any foreclosure sale after your bankruptcy is filed would be void.

The Automatic Stay

The moment your bankruptcy case is filed the automatic stay stops collection and legal activity. This means your creditors must stop pursuing you, and any further actions by them would be illegal. You may then reorganize your finances in a Chapter 13 bankruptcy or quickly discharge your debts in a Chapter 7 bankruptcy without the pressure from your creditors. Once your bankruptcy is complete, a discharge is entered. The discharge permanently stays your creditors’ legal actions and provides you with a fresh start. 11 U.S.C. §524.

Collectors are one of the worst aspects of falling behind with a creditor. They are trained to harass and berate you in order to try and get any money as quickly as possible. Collectors understand that when a person falls behind there may be limited resources. They will do whatever is necessary to try and take those resources even if it means you cannot afford food, shelter, and other basic necessities.

Bankruptcy stops all collector contact, such as collection calls or letters, and absolutely stops any actions being taken by collectors to take your money or property. As soon as the bankruptcy is filled, the Bankruptcy court will send an official letter evidencing your filing to the collectors and they must stop contacting you or they will be violating the automatic stay.

If a creditor decides to file a lawsuit against you, then filing a bankruptcy will immediately stop the lawsuit. The automatic stay makes it illegal for a creditor to pursue a lawsuit and makes any judgment obtained after your bankruptcy filing void.

The Foreclosure Process in Colorado

The automatic stay can help you postpone or stop the repossession or foreclosure of your property.Foreclosure is the legal process by which your property may be sold by the mortgage company or another lienholder.

Once the mortgage company pursues foreclosure, they must provide you with notice of the foreclosure. After you have received notice of the foreclosure, you will be given the opportunity to catch up on past-due payments, attend a hearing, and protect your rights.

If the alternatives offered by the foreclosing mortgage company or through the Colorado foreclosure process do not help you, then bankruptcy may be an appropriate solution to stop your foreclosure. It is important to understand that even if you are behind on your mortgage and in foreclosure, your home is your property and not the mortgage company’s property. This is true until the property is actually sold at the foreclosure sale.

Likewise, a creditor who has a secured interest in your vehicle and wants to repossess the vehicle can no longer do so after the bankruptcy is filed. A creditor who wants to foreclosure on your house is in the same situation and any sale must be stopped immediately.

Filing bankruptcy gives you options. Bankruptcy will allow you to hold onto your car or home until you can negotiate or modify your agreement with the creditor, surrender them at a later date so you may replace a car or move before repossession or foreclosure occurs, or get caught up on payments in a bankruptcy payment plan so you can keep your property.

In addition, you may take advantage of bankruptcy laws such as:

Redemption, which allows you to walk away from your current car loan and finance the car at its current value and a lower payment.
Cramming, which allows you to pay only the current market value of your vehicle during bankruptcy and keep the vehicle after your bankruptcy is complete.
Lien stripping, which allows you to remove a second or higher mortgage from your home.

Differences in Chapter 7 v. Chapter 13 Bankruptcy and Foreclosure

The type of bankruptcy filed will determine whether the foreclosure will just be postponed or whether you will be using bankruptcy to pay back arrearages and keep your home.

Chapter 7 bankruptcy will stop foreclosure on your home; however, since Chapter 7 bankruptcy does not have a plan of reorganization, then Chapter 7 is only a temporary solution to stopping foreclosure. Once the foreclosing mortgage company requests the automatic stay be lifted or the bankruptcy case is discharged, then the mortgage company may begin the foreclosure process where they left off.

However, this does not mean a Chapter 7 cannot help you keep your home. By eliminating expensive debts, such as credit cards or high monthly auto loan payments, then you may be able to afford to pay your mortgage. After you file Chapter 7, you would want to begin discussing your options for modifying your mortgage with your lender in order to save your home.

In the alternative, if you file a Chapter 13 bankruptcy, then you do not need to have a separate agreement with the mortgage company to keep your home. The bankruptcy will stop your foreclosure, allow you to reorganize expensive debt, begin making regular payment after your case is filed, and permit you to catch up on arrearages over 3-5 years.

In addition, in Chapter 13 bankruptcy you can remove second or higher mortgages and liens placed on your home as long as the value of the home is equal to or less than the amount you owe on the first mortgage. Bankruptcy attorneys call this lien stripping. It can save you thousands of dollars and help you afford to keep your home.

Wage Garnishment and the Automatic Stay

In most cases a creditor must file a lawsuit, receive a judgment, and then request a Writ of Garnishment in order to take money from your bank account or garnish your paycheck. However, certain creditors, such as the IRS or student loan providers, do not need to take you to court. Regardless, filing bankruptcy will stop even these creditors from further garnishment and collections.

The automatic stay will stop a garnishment at any point. If you are concerned you will be garnished shortly or have already been garnished, then the bankruptcy filing will put an immediate stop to any further money being taken. In certain circumstances, your bankruptcy attorney can even get your money back. If it is important to stop a garnishment right away, your bankruptcy attorney can file your case and immediately get in contact with the appropriate people to stop any further garnishment.

Exceptions to Automatic Stay Stopping a Lawsuit

Your lawsuit will be stopped by your bankruptcy attorney after the filing of your case. Once the case is filed, the bankruptcy court will send an official letter to the attorneys or creditor handling the lawsuit. In addition, if there is a court date that needs to be stopped quickly, then your bankruptcy attorney can immediately put the creditor on notice of your filing and in most cases stop you from having to appear in court.There are few exceptions to the automatic stay stopping a lawsuit. However, they are worth mentioning in case they apply to your situation. Here are some common examples of legal proceedings the automatic stay will not stop:

criminal legal proceeding
establishment of paternity
legal proceeding for child support or spousal support
child custody or visitation proceedings
divorce except to the extent the divorce is determining the division of property
proceeding in regards to domestic violence
suspension or restriction of a driver’s license, recreational license, or professional license

Taking the Next Step to Stop Creditors

The next step is to meet with an experienced bankruptcy attorney to protect your interests, determine alternatives, or file a bankruptcy to stop collections, lawsuits, repossession, or foreclosure. At Cohen and Cohen, we can help you understand your options and make important legal decisions.

To schedule an initial consultation to review your case at our convenient central Denver location, call 303-933-4529 or fill out our online contact form.

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Hear From Our Clients

"It has been almost a year now that I came to you with my legal issues. At that time I wanted to try and take on the judicial system by myself and was pretty confident about my abilities. I had read books and documents of terms and conditions and thought this would be enough. I was very skeptical about any type of legal help but knowing what I know now, I am so glad I did not take the legal system on by myself. There were numerous terms and phrases I could not comprehend and you made it much easier to understand what I needed to know. Thanks for everything!"

— Joe T.

“I’ve worked with Cohen and Cohen for many years in many different capacities from handling my divorce to dealing with a difficult landlady, with results always ending up in my favor, in the best interest of my child, or in the interest of justice. Rob and his team have and continue to be dedicated to my cases, careful and protective of my sensitive information, and have solidly fought for my interests in all facets of the legal system. I have and will continue to recommend Cohen and Cohen to my friends and family who are in need of any legal advice – no matter the size, need papers filed, or unfortunately a divorce or other difficult matter at hand. Why? Because I know they’ll find a law firm rooted in integrity and driven my honorable principals.“

— Kyle

"Dear Mr. Cohen, I would like to thank you for completing my brother’s bankruptcy case. My brother and his family appreciate the time and effort it took to help relieve the stress of this financial burden. I would also like to commend your staff, Matthew and at the time, Barbara. My brother felt that they took the time to answer all of his questions and this made this process much easier for him. In this day and age, not too many people take the time to commend someone for doing and excellent job. We all concur, that is what your office delivered."

— MA.

”I’d like to personally thank you for making an extremely difficult situation as pleasant as possible. I found myself in a very awkward financial position with no recourse but to file for bankruptcy. Your experience, directness, attention to detail and your honesty helped guide me through this process. I am now starting over in life, with a fresh start and look forward to tomorrow with renewed expectations. Thank you once again for your service and help. I will happily refer you to anybody who might need your service.“

— Clarissa

“Most people do not seek out the services of an attorney unless they are beyond the means to help themselves. When I sought help for mounting financial stress due to a divorce case, Rob clearly and articulately helped me understand my options. He did not push for one option over another—he provided the information and then let me decide. I did not feel he was selling or pushing a particular action. I felt he was a competent and respectful professional who treated me as someone who is capable of making informed decisions and could participate with him in decision-making. I felt I could trust his advice. That made all the difference in this highly stressful and chaotic time.”

— Ashley T.

"I would like to Thank you for all of your assistance with my financial affairs. With all of your knowledge and guidance regarding my Bankruptcy, you made this transition a lot less stressful. You were great with returning my calls even for the most minute question. I was very unsure of this whole legal process but you really did ease my mind with the way you had everything laid out in a structured plan, including payments, paperwork and filing of my case while I was in your office, on the same day. Not many people can say this experience was a positive one for them but with your assistance I can say my experience with your law firm was extremely positive."

— Chris O.

”Being in the financial position to have to file a Chapter 7 Bankruptcy was something that my wife and I never thought would happen to us. But a failed business investment and huge financial liabilities stemming from the personal guarantees we had made left us with no other reasonable choice. Making the choice to work with Rob Cohen to prepare, file, and follow the bankruptcy to its close has proven to be the best decision we could have made. Rob took away any sense of guilt, embarrassment, or shame during the filing process and focused on getting us the cleanest, fairest settlement possible. I am happy to say that we did receive a settlement deal from the Trustee that was much more in our favor than I ever would have hoped for when we realized we would have to file for bankruptcy protection. Rob’s calm demeanor and comprehensive sense of the “big picture” kept both my wife and I assured and confident. His extensive knowledge of the bankruptcy code also put us at ease anytime a question or concern would arise. Having Cohen & Cohen on our side while experiencing the worst financial crisis of our lives has been instrumental in our rapid recover and ability to regain control of our lives.”

— Client

"It has been awhile but i just wanted to say thank you so much for helping me with my case in the family courts. I think of you each time I (unfortunately) still deal with them on my own. My life is still not recovered but I am chipping away. You did a heck of a job and stuck in there when it looked completely hopeless. When I met you I was sleeping in my car or couch surfing due to my horrible divorce decree. Now I have my own apartment and I get to spend my 50% with my kids! My son is headed off to college this year and my daughter is going into high school. I could have missed those moments if you hadn’t helped when others wouldn’t. I have had to deal with quite a few attorneys over the last few years and you are head and shoulders above the rest."

— T. N.

"Working with Cohen and Cohen epitomizes the phrase, “You get what you pay for.” From the initial consultation I immediately trusted Rob. He was thorough and detail oriented, the review process was conversational rather than Rob running through a list of questions from a sheet of paper. It was obvious that Rob was considering my case from a number of angles while we discussed my situation. When it was time to pay my retainer Rob informed me that he was more expensive than his associates and was comfortable with me engaging them if I wanted to save some money. It was a no-brainer for me, I wanted to work with Rob.All aspects of the process at every level were handled quickly, professionally and with courtesy. The day of my hearing is where I truly realized that I’d made the correct choice with Cohen and Cohen. We entered the hearing room well before it was our assigned time and I watched another case being heard. It was obvious that the attorney wasn’t prepared nor did they have all of the details in order. This perturbed the trustee and it was obvious he had no intention of leniency as a result of his time being wasted. The attorney and her client left with more work to do and no progress in their case. Because we were ready to go and the previous case took less time than anticipated my case was heard almost an hour prior to the scheduled time. Rob had coached me as to what information to have available for all the questions asked by the trustee – we were prepared and the hearing went smoothly because of Rob’s attention to detail."

— Client

“I called you in desperation because I needed help with my divorce case that had forced me into bankruptcy. Your obvious expertise, together with good common sense and excellent knowledge of the law, helped me prepare for the battle to come in my case and ultimately lead to an overwhelming victory. In a divorce that lasted nearly 3 years for a marriage that lasted less with no children, one can imagine the complexity of the case. It was immediately following Rob’s deposition of the plaintiff, that the plaintiff’s counsel indicated a willingness to consider a settlement for something other than their original amounts. Shortly after that, the allegations from her and her attorney were completely dropped and they discontinued any further actions. Without Rob’s knowledge and ability to forcefully state his opinions and conclusions in the deposition it is doubtful that this matter would have settled before possibly hundreds of more hours and many more court appearances would have been used. I would highly recommend Rob as an expert to any lawyer, plaintiff or defense needing someone who cares, takes the time to listen to understand the case, and wants to be treated with integrity throughout the process no matter what the situation.”

— Mark S.

"Thanks again for everything….we have said several times to each other, 'Damn good thing we have Rob on our side!'"

— Client

"Bankruptcy is certainly not what one would describe as a “pleasant” event, but having a conscientious, experienced attorney can lessen the more unpleasant, and unexpected aspects of getting through it. I knew that Rob was asking questions and collecting the necessary materials and answering all the questions I had well in advance of the court date to appear before the Trustee. Once that date arrived, I was sitting in a courtroom where several other attorneys and clients were meeting prior to their Trustee meeting. I was amazed at the conversations I heard going on. These attorneys were asking questions that Rob and I had discussed much earlier in preparatory meetings. I’m not sure I would’ve had all my documentation and information at hand to answer these detailed questions thirty minutes before the hearing. When we were admitted into the courtroom where the Trustee heard the cases, I noticed he asked for further documentation to answer questions that weren’t satisfactorily addressed in the materials presented on several different cases. The respective attorneys would answer that the material would be provided in the next 2 weeks to 2 months. I was naturally worried that when my case was called, I would be confronted with the same request for more information and delay the bankruptcy. But, when we were finally called, the Trustee looked through the paperwork and asked us a couple of questions. He studied the paperwork a little more and that was it. Everyone’s case is unique and I imagine there are always going to be those requests for more information. I can just say, I was very relieved and pleased to have had Rob as my attorney that day knowing that we had worked together to anticipate and provide as much information as possible to facilitate a smooth hearing which resulted in no delays."

— Rhonda

"My experience working with Rob was excellent to say the least. The business he provided was easy to understand and he walked me through the entire process which was very helpful. His attention to detail was very professional and he also is a very caring person whom I would recommend to anyone."

— Jen S.

“Rob – THANK YOU so much for all your help! I really really appreciate your hard work and thank you for making me feel comfortable at a difficult time. I will gladly recommend you to other people who may be in need of your services (no offense, but hopefully no one that I know will need a divorce attorney, but then again, I never thought I would either :o)). Again, MANY thanks, hope you had a wonderful holiday and Happy New Year!”

— Brenda Q.

"I have never ever experienced what i had to go through this year I almost lost my home and the stress was unbearable Mr. Cohen went out of his way to support me in everything I did not only is the law firm the best ever but i would recommend them to everyone i know. You cannot find attorney’s like this that are willing to give you some kind of piece of mind and do whatever it takes to help you in situations you are not used to handling. Thank you from the bottom of my heart Mr. Cohen I will never forget what you have done for me and my family.“

— Edwina

“The law firm of Cohen and Cohen recently helped me navigate my way through the treacherous waters of divorce. I knew from talking with my Cousin who is a lawyer that it is very important to hire a competent lawyer to represent you in the divorce process. From the initial consultation right up until the very end I was provided with sound advice and I always felt comfortable and that things were moving in the right direction. I was able to fully understand the divorce process after one meeting and was kept well informed on what paperwork to file and when, and also what to expect. In addition, Rob was extremely well prepared throughout the divorce process and this was important when it came time to settle. He also provided me with advice about things I never even thought about and he provided a unique perspective which kept me out of harms way throughout the process. I was also pleased with the fact at how available he was and also that he knows how to utilize technology not only to save money, but also in order to engage in effective communication with the other party on matters related to the divorce. He was very quick at responding to any and all inquires that I had throughout the divorce process. Overall I would definitely recommend his law firm. Hiring him to represent me was worth every penny spent. If I ever need to hire a lawyer again for any of the areas that the law firm of Cohen and Cohen specializes in, I know who to contact”

— Client

"Thanks again for coming through for us! You’ll be the first company we consider if we have any legal issues in the future, and we’ll be recommending your company as well, to others. You helped us to feel very at ease with what we saw as a dire situation, and gave me some excellent advice as to how to regain my excellent credit standing which I used to have [7 years ago]. All the best to you and yours,"

— Beth

“There are simply no words that can express how grateful we are for what you have done for my family. You gave us hope, you gave us peace, and you gave us back our lives and our home!! You were the light in the dark tunnel that our lives had turned into. You took us out and gave us a fresh start! You made us feel so comfortable that all of our insecurities, guilt, and shame disappeared. He helped us to realize our mistakes but not to feel depressed or guilty about them. Throughout the proceedings, objections and motions you stayed in contact with us and answered our questions patiently and were never too busy to speak with us regarding additional concerns that we had. The attention to detail, knowledge of the law and overall work ethic you have is just amazing and we will always be very thankful. I don’t even want to think where we would be right now if it wasn’t for you. I thank God everyday for allowing me to run into you at the courthouse. We want you to know that you will always have a special place in our hearts. Thank you for making the whole Bankruptcy process smooth and easy for us, considering how difficult our case was. Therefore, we highly recommend anyone in debt to consult with Robert Cohen because spending the money to have your case filed professionally, properly and with zero mistakes is worth every penny.”

— John & Tammra F.

“Rob brings an extensive and nuanced understanding of the practical and artful aspects of getting out of bankruptcy. We felt far more informed about our options and about pros and cons of each alternative after consulting with him; as well as confident of his team’s ability to execute with the best interests of the client in mind. If you are considering bankruptcy he should be your first and last call.”

— D. V.

”I want to thank you for making a stressful situation bearable by showing a professional manner and honestly dealing with me. I appreciate you and your staff and would recommend you to anyone who should need legal assistance.“

— Hunter

“…You really enlightened me on bankruptcy and the understanding of how it works. I felt very comfortable and know in the future if and when I need a lawyer, your it…[If] I do know anyone looking for a lawyer [they] will be sent to you. Thanks again, Your a good, patient, non intimidating professional. Hope your enjoying your teaching I could imagine your very good at it.”

— Tami

“I just wanted to thank you so much for all of your help with the bankruptcy and making it so I could live again! Thanks again”

— Tina

"I will never be able to thank you enough for helping me feel comfortable thru the process of bankruptcy at a most difficult time. Dealing with the stresses of the economy, the added stress of dealing with illness and facing the stigma and feeling of failure that accompanies filing bankruptcy. You were extremely helpful, knowledgeable, comforting and now I can focus on recovery both financially and physically. I will always mention you and your firm, Cohen and Cohen to anyone I know that needs such assistance. Again, most grateful.”

— Cynthia

“Thanks so much for helping me in connection with a debt I did not owe. After over a year of trying to deal with collections agencies on my own (the alleged debt had been “assigned” several times), I realized that I did not have the time or the energy to fight this by myself. It took the experience and wisdom of someone who understands the system to effectively and expeditiously address this matter. After retaining your firm, I have not been contacted again by ANY agencies on this matter. Your fees were very reasonable, you handled the matter promptly and you delivered a great end result. Frankly, I wish I had retained your firm much earlier in the process. If I had done so, I would have saved a lot of time and energy, and the stress of having to fight the agencies by myself. Thank you for helping me successfully fight back on a debt that I truly did not owe.“

— E. C.

"Thanks again for all your help! I can’t imagine a way you could have been more effective. You kept our costs low and helped us reach a solution without having to go to trial. I’m almost sad I didn’t get to see you work in the courtroom, almost. Lol! Thank you"

— L. B.

"Thank you again so very much! We finally got the load mod we needed to stay in our home which was official on November 1, 2014, none of which would not have been possible without your willingness to handle our case. We are incredibly grateful for your expertise and kindness. We highly recommend your services to everyone!”

— Larry & Karen

Rob & Matt, “Nothing I can write can repay you for your kindness and help. The fact that you expected nothing in return makes a hard task [possible]. From the bottom of my heart – Thank you.”

— Erin

”I visited Rob Cohen to seek his advice regarding my legal issues. Rob stated clearly all the possibilities and options. He was extremely knowledgeable about the current laws and their impact on my situation. He recommended the most reputable people in different areas to aid in my decision making. I would recommend him highly."

— Client

”I recently completed a bankruptcy with a now defunct law firm. I had a question that needed immediate attention, and was referred to Mr. Rob Cohen by another attorney. I was reluctant to call because I was afraid he would not be too keen on helping me out, because he didn’t handle my bankruptcy. The need for an answer got the best of me, so I called. I was very pleasantly surprised with the response I received. It started with a very kind receptionist who politely listened to my problem and took my information. I was sure she would pass everything along to one of the attorneys and I would hear back from them sometime in the near future. Much to my surprise, she transferred me to Mr. Cohen immediately, right then and there. Mr. Cohen took may call, listened to my question and dilemma, and very professionally went through the options I had available to me. He was very kind, sympathetic, and he was very genuine and compassionate to my situation. He really understood my problem and explained in detail my choices in a a way that I understood completely. He made me feel as if I was his only client. The best part of this story is that he did all of these things out of the kindness of his heart, he charged me nothing. Mr. Rob Cohen is a class act, there is no pretense with this man. He really cares and treated me much better than I could have imagined, considering the sensitivity of my situation and how hard it was for me to talk about it. Thank you Mr. Cohen, you are one of the good guys and I hope sometime in the future I can return the favor.”

— Steve M.

”Thank you for your assistance again. Cohen & Cohen, staff & Robertson for helping us through a difficult time in our lives.”

— Client

“Dear Rob: I wanted to express my gratitude for your assistance with my bankruptcy process. I found your services extremely professional and would recommend you highly I especially appreciated your sense of empathy during a very difficult financial struggle. Best Regards,”

— Client

"Robertson B. (Rob) Cohen was referred to me by one of his peers. I felt “what better a recommendation than that from another attorney”, so I called the law offices of Cohen and Cohen and spoke with Rob, and I am so happy that I did. He immediately understood my situation and was extremely helpful.In addition to his reassuring and supportive nature, Rob possesses the qualities one hopes for in their attorney; a strong knowledge of the law, good judgment, determination, and integrity. He is a good man, he is an excellent attorney. I felt I was in the best of hands with this fine gentleman, his associate (David Little, who also assisted me) and their responsive and caring office staff.”

— Carol

Quality. Service. Integrity.

More than just buzzwords.

The Automatic Stay

The Foreclosure Process in Colorado

Differences in Chapter 7 v. Chapter 13 Bankruptcy and Foreclosure

Wage Garnishment and the Automatic Stay

Exceptions to Automatic Stay Stopping a Lawsuit

Taking the Next Step to Stop Creditors

Bankruptcy Stops Foreclosure

The Automatic Stay

The Foreclosure Process in Colorado

Differences in Chapter 7 v. Chapter 13 Bankruptcy and Foreclosure

Wage Garnishment and the Automatic Stay

Exceptions to Automatic Stay Stopping a Lawsuit

Taking the Next Step to Stop Creditors

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