Goldman & Beslow LLC
East Orange: 973-677-9000
Paterson: 973-247-9445
Jersey City: 201-659-6226
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Should I File Chapter 7 and Stay in My House Until Sheriff's Sale?

Because of the state of the financial market in New Jersey, many foreclosures are taking years to complete. Meanwhile, families are left wondering what on earth they should do about the mortgage they will not be able to pay and the house they will not be able to keep.

One solution is to file for Chapter 7 bankruptcy and stay in your home until the house is listed for Sheriff's sale. This is a reasonable solution for people who are unable to make the payments that filing for Chapter 13 requires.

By filing for Chapter 7 bankruptcy, you eliminate your debt. This should make it possible for you to continue to pay your utility bills and homeowners insurance. (Money owed to utility companies is eliminated in bankruptcy.) Once your debt is discharged, you can continue to live in your house, not paying your mortgage, as your house is in foreclosure, and save money so you can afford to move when the bank insists you leave.

If you continue to pay homeowners insurance and stay up to date on your utility bills, you can stay in your home temporarily and get a fresh start. By paying your utility bills on time, you start to rebuild your credit so that when the time comes, you will have fewer problems renting an apartment or home, or even getting a new mortgage. Many people who have gone through bankruptcy have qualified for FHA or VA mortgages within a year of completing their bankruptcy. Our New Jersey bankruptcy attorneys can help you determine if this is a viable option for you.

Homeowner Options and Rights During Bankruptcy

Bankruptcy places an automatic stay on all of your creditors, including your mortgage lender. This means that they cannot proceed with the foreclosure of your home until the bankruptcy is completed or the stay is vacated. It is possible that your lender will ask the bankruptcy trustee to release the property from automatic stay so they can proceed with foreclosure. Either way, you have gained more time in your house, and by saving the money you would have spent on your mortgage, you have something to start over with.

If you are being foreclosed on and you do not have additional debt, you may want to wait to file bankruptcy until your lender pursues a deficiency claim against you for the balance of your mortgage.

Contact experienced Chapter 7 bankruptcy lawyers with offices in Paterson, Jersey City and East Orange today to find the solutions to your financial problems. Call for a free consultation at 973-677-9000 or 888-827-5493.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.


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  • NACBA | National Association of Consumer Bankruptcy Attorneys
  • NACA | National Association of Consumer Advocates
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Goldman & Beslow LLC

Goldman & Beslow, LLC is a Federal Debt Relief Agency by an Act of Congress. We have proudly assisted consumers seeking relief under the U.S. Bankruptcy Code for over 38 years.

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7 Glenwood Avenue,
Suite 311B
East Orange, NJ 07017
East Orange Law Office

Phone: 973-414-8069
Phone: 973-419-7631
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
Fax: 973-675-5886
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NEWARK OFFICE 168 Bloomfield Avenue
Newark, NJ 07104
Newark Law Office

Phone: 973-483-1333
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
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PATERSON OFFICE 100 Hamilton Plaza,
Suite 405
Paterson, NJ 07510
Paterson Law Office

Phone: 973-247-9445
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
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JERSEY CITY OFFICE 26 Journal Square,
Suite 603
Jersey City, NJ 07306
Jersey City Law Office

Phone: 201-659-6226
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
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