Filing Bankruptcy To Stop Foreclosure

The thought of losing your home to foreclosure is a terrifying one that my homeowners abhor. And not just that, the aftermath effect of foreclosure on your credit score, financial situation, and mental health is very devastating. Even though no one wants to experience foreclosure, most homeowners face foreclosure and do not know what to do. It’s easy to give up the fight in a situation like this, as foreclosure can be stressful and complicated. However, if you have tried every option and you can’t seem to stop the foreclosure, then file for bankruptcy.

Filing for bankruptcy will help you stop foreclosure with immediate effect and not just that, you will also get the relief you need to get back on track with your mortgage payment. Once your lender finds out you filed for bankruptcy, the foreclosure sale will be postponed for at least 3months. Depending on the type of chapter you filed for, you will be able to propose a repayment plan with your lender for the missed payment and other outstanding balance.

You will need to hire a lawyer to help you go through this process. Many homeowners filed for bankruptcy themselves, and it cost them much. It’s a legal process, and there are a lot of legal terminologies involved. A lawyer will understand them better, not just for today but for future purposes. Another benefit you will enjoy for hiring a lawyer is that you will have access to legal advice as to know which chapter of bankruptcy will be best for your financial situation. However, if you don’t want to lose your home, consider chapter 11 or chapter 13 bankruptcy.

If you file for bankruptcy before a foreclosure sale is concluded, you will save your home. Filing for bankruptcy can’t help you if your home is already sold; therefore, act as early as possible.