Will Filing Bankruptcy Stop Foreclosure Sales

Filing for bankruptcy has proven to be the most effective tool used by homeowners to stop foreclosure. It will give you the time needed to negotiate with your bank for other alternatives as all collection process include foreclosure will have been put on hold. However, you must do this before foreclose sales occur, the reason being that once a sale has been finalized, the house is no longer yours, and filing for bankruptcy won’t save your home anymore.

However, while going through a foreclosure, a lot of pressure will be on and you do not want to make decisions under pressure only to regret it later. Do not panic, take every step carefully and diligently. I have listed below some things you should consider before filing for bankruptcy.

Which chapter should you go for?

There are two of them; chapter 7 bankruptcy and chapter 13 bankruptcy. They both can effectively stop foreclosure sale but they also have advantages and disadvantages you should be aware of before filing for any of them. Chapter 7 bankruptcy is temporary and you can lose your home if care is not taken. Chapter 13 bankruptcy however let you keep your home and it can last up to 5 years if you go through it properly.

Do I need a lawyer?

Anything that requires legal proceedings is better with a lawyer, you don’t want to sign documents that will later be used against you. Having a lawyer to help you go through the process is definitely worth it. It’s advisable to go for a foreclosure lawyer as they are more familiar with the state law and proceedings.

Conclusion

Filing for bankruptcy can of truth stop foreclosure sale, however, if done 1 second after your house was sold, it won’t save your home. Act now.