Can I Still File Bankruptcy to Keep My House After a Foreclosure Judgment in Milwaukee County?

If you’re facing foreclosure in Milwaukee County, you may be wondering if filing for bankruptcy can help you keep your home. The good news is that bankruptcy can be a viable option to halt the foreclosure process and give you a fresh start. However, understanding the specifics of how bankruptcy works in relation to foreclosure is crucial. Here’s what you need to know.

Understanding Foreclosure Judgments in Milwaukee County

A foreclosure judgment is a court order that allows the lender to sell your home to recover the unpaid mortgage balance. Once a foreclosure judgment is entered in Milwaukee County, the clock starts ticking towards the sale of your home. This period can vary, but it typically offers a limited window to take action.

How Bankruptcy Can Help

Chapter 13 Bankruptcy: If you’re determined to keep your home, Chapter 13 bankruptcy is often the best option. Chapter 13 allows you to restructure your debts and create a repayment plan that spans three to five years. This plan can include catching up on missed mortgage payments, effectively halting the foreclosure process as long as you adhere to the repayment schedule.

Chapter 7 Bankruptcy: While Chapter 7 bankruptcy doesn’t offer a way to catch up on missed payments, it can delay the foreclosure process. Filing for Chapter 7 creates an automatic stay, which temporarily stops foreclosure actions. This can provide you with valuable time to negotiate with your lender or explore other options.

Timing is Crucial

To maximize the benefits of bankruptcy, timing is essential. Filing for bankruptcy before the foreclosure judgment date will stop the lender from obtaining a judgment. Once the judgment is entered there is typically a 3-month redemption period before the house is eligible to be sold at a sheriff sale. If your mortgage was dated prior to 2015 then it is typically a 6-month redemption period for home mortgages.  That being said, you have until the date the sheriff’s deed has been recorded to file a chapter 13 bankruptcy to stop the sale and give you more control over the outcome. It’s important to consult with a bankruptcy attorney as soon as possible to discuss your options and develop a strategy that fits your unique situation.

Other Considerations

• Homestead Exemption: Wisconsin law provides a homestead exemption that can protect some of the equity in your home during bankruptcy. This can be a significant advantage in both Chapter 7 and Chapter 13 filings.
• Credit Impact: While bankruptcy will impact your credit, it can also provide a pathway to financial stability and recovery. Many individuals find that their credit scores begin to improve soon after completing bankruptcy.

Conclusion

Filing for bankruptcy in Milwaukee County after a foreclosure judgment is not only possible but can be a strategic move to keep your home. Whether through Chapter 13’s repayment plan or Chapter 7’s automatic stay, bankruptcy provides tools to manage and overcome financial challenges. To explore your options and protect your home, consult with a knowledgeable bankruptcy attorney today.

For personalized advice and assistance, contact Berning Law at via phone or text 414-306-1977 or visit our office at 342 N. Water Street, Ste 630, Milwaukee, WI 53202. I am here to help you navigate the complexities of bankruptcy and foreclosure. 1 lawyer. 1 face. Your case.