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Creditor attempts to foreclose on reality TV star's home

For people in Gastonia who are struggling with debt, a personal bankruptcy might be the best option for them to regain a firm and stable financial status. Yet which form of personal bankruptcy is best? That may only be determined on a case-by-case basis. If one has fallen behind on their mortgage payments, a Chapter 13 bankruptcy may be their best option. Once foreclosure proceedings have been initiated, a Chapter only stays a foreclosure while the case is still active (which is usually only a few months). The lender can then proceed with the foreclosure once the case is over. In a Chapter 13 case, however, mortgage arrears can be included in a payment plan, meaning they will eventually be settled if the debtor continues to make their regular mortgage payments while their case is still open. 

This may be one of the reasons why former reality TV star Paul Teutul Sr. opted to file for Chapter 13 earlier this year. Teutul hopes to keep his New York mansion, yet the bank holding the loan has recently asked permission to proceed with the foreclosure. Its claim is that it would experience irreparable harm if barred from this action, as Teutul not only has defaulted on his mortgage, but also a $15 million loan issued to him earlier. 

There may be cases where a creditor is allowed to seize an asset that may be otherwise subject to bankruptcy protection if a filer does not comply with the terms of the federal bankruptcy code. This may ultimately defeat the purposes of them filing if they are unable to remain compliant. For this reason, having an experienced bankruptcy attorney on one's side may be vital to avoiding any small oversights or errors that could lead to trouble. 

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Sigmon & Henderson, PLLC
518 S New Hope Road
Gastonia, NC 28054

Phone: 704-269-6374
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