Forced Sale of a Bankruptcy Debtor's Home

The forced sale of a bankruptcy debtor's home has become a more common occurrence in recent years.  When a debtor refuses to respond to the creditor's attempts to settle the debt, this is a possible outcome.  Take a look at what you need to know about the forced sale of a bankruptcy debtor's home.

What Is A Forced Sale?

A forced sale is when a court orders that a home be sold to settle an outstanding debt.  It is forced because when the situation gets to this point then the debtor has no say in the matter.  But just as important as what happens is why it happens.

Why Do Forced Sales Happen?

Forced sales happen for many reasons.  Any time there is an outstanding debt that a creditor has not been able to settle with the debtor a forced sale of a home could be the eventual end result, if there are no other assets that could be used to settle that debt.  One of the most common reasons for the forced sale of a bankruptcy debtor's home is defaulting on the mortgage.

How Do Forced Sales Happen?

Forced sales do not happen easily.  There is a long process that precedes them.  The creditor must prove to a court that sufficient efforts were made to settle the debt with the debtor, such as attempts to work out a payment plan.  All this must be clearly demonstrated for a short sale decision to be reached and even then the actual sale may not happen immediately.  Creditors often try to avoid this process because it is involved, time consuming, and expensive.

What Can A Lawyer Do?

A lawyer can explain your options and possibly help you to avoid a forced sale.  It depends on your situation and how far you are into the process but a lawyer can fight for your rights to the extent possible.