This procedure was allowed in a Third Circuit Decision.   In Taylor v. Slick, 178 F.3d 698 (3rd Cir. 2000), the Court allowed that a Plaintiff could adjourn the Sheriff’s Sale while the Bankruptcy Case is pending.  

Where a lawyer represents a Debtor in Chapter 7 or Chapter 13 Bankruptcy in New Jersey, the attorney should clarify whether a HUD Letter regarding notice of the new Sale date may be sent to the Debtor while the Bankruptcy case is pending, without notice to the attorney, or whether such letter would be subject to the appropriate sanction pursuant to 11 U.S.C. §362.  

This case shows the need that anyone who is faced with a foreclosure in New Jersey and considering a Chapter 7 or Chapter 13 Bankruptcy case should consult with an attorney who is experienced in these matters.

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