Can A Bankruptcy Stop Foreclosure

Absolutely. Many homeowners file for bankruptcy because it’s their last resort, it has helped a lot of homeowners stop foreclosure and save their homes. Especially when a foreclosure sale is a day away, filing for bankruptcy is the only way to stop foreclosure in that case. So if you are wondering whether it will help you stop foreclosure, it will, and if all other options fail, filing for foreclosure won’t fail you.

The first step to this process is to find out about the different chapters of bankruptcy available and which is best for you. It’s advisable to go for chapter 11 or chapter 13 as they offer many benefits that others do not offer. You should discuss with a lawyer about your financial difficulties and ask for legal advice on which chapter of bankruptcy will be best for you. Information is everything, you will cheat yourself if you do not know the opportunity made available for you.

The second step is to decide which one you want to file and start looking beyond. You must be aware of what you will be required to do after you stop foreclosure, so start planning. For example, chapter 13 will allow you to propose a repayment plan that can last for 3 to 5 years. Start planning how your plan will be and other things you will be required to do.

The next step is to ask your attorney to help you file for bankruptcy, make sure you do this as early as possible. You don’t want to leave anything to chance. In some states, the foreclosure sale date might not be fixed, and your home can be sold at any time. Therefore, act as early as you can and save yourself from unnecessary tension. Never file for bankruptcy yourself except you’re a legal practitioner, always employ the service of a lawyer.