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"Can Filing for Bankruptcy Stop Foreclosure Sales on My Property?"

vinnieg1980

Updated: Feb 22, 2024




Filing for bankruptcy can indeed halt the foreclosure process temporarily due to a powerful legal tool called the automatic stay. Here’s how it works:

  1. Automatic Stay: When you file for bankruptcy relief, an automatic stay goes into effect immediately. This stay bars most collection activities, including foreclosure sales. Essentially, it puts a pause on any further foreclosure proceedings1.

  2. Chapter 13 Bankruptcy: If you’re facing foreclosure, Chapter 13 bankruptcy might be a viable option. It allows you to create a 3-5 year repayment plan to catch up on your past-due mortgage payments. By doing so, you can potentially keep your home and prevent foreclosure1.

  3. Chapter 7 Bankruptcy: While Chapter 7 bankruptcy doesn’t directly allow you to keep your home, it can still temporarily stop foreclosure proceedings. However, you’ll need to explore other options to address the mortgage debt1.

  4. Credit Considerations: Keep in mind that bankruptcy does have consequences for your credit score. Weigh your options carefully before committing to this course of action1.

Remember, if you’re a homeowner facing foreclosure, timely action is crucial. Consult with a legal professional to determine the best approach based on your specific circumstances. 🏠💡

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We help people file bankruptcy petitions to obtain relief under the bankruptcy code. The information contained on this website is intended to provide general information only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.

 

You should consult with an attorney licensed to practice in your jurisdiction before relying upon any of the information from this website.

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