Former NBA All Star Allen Iverson’s Atlanta home is facing a foreclosure auction.
According to TMZ, Iverson’s $4.5 million home was scheduled to go to auction on December 4 after he defaulted on a $1.2 million mortgage.
However, before the auction Iverson filed a lawsuit against his lender claiming that he never consented to a loan for the home. According to Iverson, his estranged wife, who he is in the process of divorcing, signed for the mortgage, knowing that he would not be able to afford the home. The lawsuit has temporarily halted the auction.
Since leaving the NBA, Iverson has reportedly lost the $154 million he earned playing basketball, and rumors have persisted that he may end up filing for bankruptcy.
If Iverson were to file for Chapter 13 bankruptcy, he could save his home. A bankruptcy generates an automatic stay that prevents creditors from taking action against homeowners to collect debts.
A Chapter 13 bankruptcy can last several years, allowing homeowners time to catch up on past due mortgage payments, while making current payments towards the balance of the loan.
Often, bankruptcy is the best way to dig out of a financial hole. Filing for bankruptcy allows you to discharge unsecured debts like credit card debt and medical bills. If your financial situation is a problem, contact our Washington DC and Maryland bankruptcy lawyer now for a free consultation.