Stop Foreclosure with Bankruptcy
If you are in threat of losing your home to foreclosure, filing for bankruptcy may help your situation by stalling or avoiding foreclosure on your house.
If you file for Chapter 7 Bankruptcy or Chapter 13 Bankruptcy before your house is auctioned off at a sheriff sale to pay creditors the amount you owe, this can delay or stop foreclosure.
Mortgage companies will typically wait until you have missed three or more payments on your mortgage before they begin with the foreclosure process. This gives you some time to explore other options to delay or avoid foreclosure, such as:
- Loan Forbearance
- Short Sale
- Deed in Lieu of Foreclosure
However, if these options will not work for you, you may want to file for bankruptcy to stop foreclosure.
How Filing for Bankruptcy Stops Foreclosure
Filing for Chapter 7 Bankruptcy can delay foreclosure on your home for a number of months, giving you some time to figure out what to do while staying in your home. Filing for Chapter 13 Bankruptcy can help you save your home entirely.
When you file for Chapter 7 or Chapter 13 Bankruptcy the court issues an Order of Relief, which includes the Automatic Stay. The Automatic Stay orders creditors to cease any collections immediately. If your home has already been scheduled for foreclosure sale, it will be postponed while the bankruptcy is pending.
Legal Help for Foreclosure and Bankruptcy
If you are facing foreclosure, you know how stressful and confusing it can be. Our team of experienced bankruptcy attorneys is here to help.
For a free legal consultation to discuss your foreclosure and bankruptcy situation, call us today at (734) 397-4540 or contact us online.