How Bankruptcy Stops Foreclosure

Bankruptcy can delay or stop the foreclosure process as long as the home hasn’t been sold

The moment you file Bankruptcy, the court will issue an automatic stay. This requires creditors to stop debt collections. This includes mortgage holders to cease foreclosure activities. If the lender has scheduled a sale and you file Bankruptcy, the sale will be stopped for about 3 to 4 months.

Many people would like to stay in their home. So chapter 13 is the better option. Chapter 13 allows you to pay off the past due mortgage payments over a length of time. If you make all payments on time, you can avoid foreclosure and keep your home.