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Sheriff Sale Bankruptcy Help in Iowa
A sheriff sale date is a deadline, and filing before it usually stops the sale. A lender can ask the court for permission to continue, so we need to see the date in your papers.
Filing before a scheduled sheriff sale usually stops it. A lender can ask the court for permission to continue, and prior filings can change this protection. The sale date stated in your court papers controls.
Key Takeaways
- How much time you have is set by the sale date, not by when the lender first contacted you.
- A three-to-five-year repayment plan can help you catch up missed mortgage payments while you make the regular payments.
- You must complete an approved credit counseling course before filing. It can often be completed online or by phone the same day.
- If a bankruptcy case was dismissed during the last year, the automatic stay, a federal protection that generally pauses collection, may be limited when you file again.
- Your options change once the home is sold. The foreclosure papers determine whether you have any right to buy it back.
The Sale Date Is Your Real Deadline
Federal law generally lets you catch up missed mortgage payments until your home is sold at the foreclosure sale under 11 U.S.C. 1322(c)(1). Filing puts the automatic stay in place, a federal protection that generally halts most collection activity. It usually stops the scheduled sale.
Chapter 13 uses a court-approved repayment plan. It can help you catch up missed mortgage or car payments while you continue making the regular payments. Plans last three to five years. Your total debt does not set your monthly payment, which is based on income left after payroll deductions and necessary living expenses. In most cases, a large percentage of eligible debt is wiped out after successful completion of the plan.
Chapter 7 also triggers the automatic stay and can discharge many common unsecured debts, including credit cards and medical bills, but it does not provide a plan for catching up missed mortgage payments. We can explain how each chapter applies to the sale date and your goals.
You Have To Take A Course Before You Can File
Federal law requires you to complete credit counseling through an approved nonprofit agency during the 180 days before filing under 11 U.S.C. 109(h). The course reviews your budget and available options. The U.S. Trustee Program publishes a list of approved agencies. A case can be thrown out if this requirement was not completed first.
Federal law allows the course to be completed online or by phone. It can often be finished the same day, and the agency provides proof that you completed it. A course from a provider outside the approved list does not count.
There Are Two Courses, Not One
The first course comes before filing. A second financial management course comes after filing. You generally must complete the second course to receive a discharge, which is the court order ending your responsibility for the debts it covers. Federal law excuses some people from this requirement because of incapacity, disability or active military duty in a combat zone.
Completing the first course does not satisfy the second requirement. If you do not complete the second course, the court can close your case without a discharge.
What Changes Once The Sale Happens
Once the home is sold, catching up the missed payments is generally no longer available. Some Iowa cases include a redemption period, which is time after the sale to buy the home back by paying what is owed. Iowa law generally allows one year to redeem the home after the sale under Iowa Code 628.3. During the first six months, only the homeowner can use that right, and the homeowner keeps possession during that time.
Some Iowa foreclosures do not include a right to buy the home back after the sale. The terms stated in your foreclosure papers control. Our page about foreclosure in Iowa explains how these two types work.
If the home sells for less than the amount owed, the lender may seek the remaining balance under Iowa Code 654.6, subject to the foreclosure terms and other exceptions. That remaining balance may be discharged in bankruptcy, depending on the foreclosure terms and your facts.
If your sale is still several weeks away, our page about missed mortgage payment help in Iowa explains the earlier options. More time can make it easier to review your income, home and other debts before deciding what to do.
If You Have Filed Before
If a bankruptcy case was dismissed during the last year, the automatic stay may be limited when you file again. After one prior case dismissed within the year, it usually ends after 30 days unless the court extends it. After two or more dismissals within the year, it does not begin unless the court orders otherwise. These rules can affect whether a scheduled sale is stopped.
Our page about help with a foreclosure sale explains these limits in more detail. We can review your filing history and explain how the rules apply to it.
The Emergency Exception Is Not A Shortcut
Federal law has a narrow exception to the pre-filing course requirement. The exception can apply if you asked an approved agency for counseling but the agency could not provide it within seven days. You must also have an emergency that the court accepts. Waiting until the day before the sale does not qualify by itself.
If the court allows the exception, you still must take the course. If the court gives you more time, the usual limit is 30 days after filing, with up to 15 more days for a valid reason. The law also has exceptions for incapacity, disability and active military duty in a combat zone.
How We Help With A Scheduled Sale
We review the sale papers and explain whether Chapter 7 or Chapter 13 can stop the scheduled sale. We also help set up a repayment plan when catching up missed mortgage payments is possible.
We focus on bankruptcy, so we don’t defend foreclosure cases or negotiate with mortgage companies.
You don’t need to know whether filing is right before you contact us. You can request a free consultation, or call us on 641-472-5141 and tell us the sale date shown in your papers.
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What Our Clients Say
Past results do not guarantee a similar outcome. Each case is unique.
Frequently Asked Questions
Can Filing Stop A Sheriff Sale?
Yes, filing before the sale usually stops it. Filing creates the automatic stay, a federal protection that generally halts most collection activity. A bankruptcy case dismissed in the last year can limit the protection.
How Late Can I File Before The Sale?
The sale date stated in your court papers controls. You can normally catch up missed mortgage payments until the home is sold, but the required course must be completed before filing.
What Must I Complete Before Filing?
You must complete a credit counseling course from an approved nonprofit agency during the 180 days before filing. A case can be thrown out if the course was not completed first.
Can I Take The Required Course Online?
Yes. Federal law allows you to take it online or by phone, and it can often be completed the same day. The provider must appear on the U.S. Trustee Program’s approved list.
Can I Skip The Course If The Sale Is Tomorrow?
Rarely. The law has a narrow exception when an approved agency could not provide counseling within seven days of your request and the court accepts the emergency. Waiting too long does not qualify by itself.
Do I Still Need The Course If The Court Allows An Exception?
Yes. The exception only gives you more time to complete it. It cannot last more than 30 days after filing, although the court may allow 15 more days for a valid reason.
Will Filing Again Stop The Sale If A Prior Case Was Thrown Out?
Yes, but a prior bankruptcy case can limit how long the automatic stay lasts. After one prior case dismissed within the year, it usually ends after 30 days unless the court extends it. After two or more dismissals within the year, it does not begin unless the court orders otherwise.
What Can I Do If The Sale Already Happened?
Catching up the missed payments is generally no longer available after the home is sold. Your foreclosure papers determine whether you have time to buy it back. Any remaining loan balance may be discharged in bankruptcy, depending on the foreclosure terms and your facts.
