Will Bankruptcy stop a foreclosure?

Will Bankruptcy stop a foreclosure? Hopefully during the foreclosure process was in motion you tried to get the foreclosure to stop. You could have tried a loan forbearance, deed in lieu of foreclosure or a short sale. If you have tried these with no luck, you may want to consider a bankruptcy. You can either choose a Chapter 7 bankruptcy which is a liquidation bk or a Chapter 13 or wager earner bankruptcy. Once you file, the court should issue an order of relief which should include an automatic stay. With the automatic stay, your creditors must cease any contact with you and collection actions. This includes your mortgage company. This is not a free ride, you will have to act quick to work out something with the bank. Your lender can still ask for a motion to lift the stay so they can proceed with the foreclosure.

Can a bankruptcy stop a foreclosure?


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What is bk?

What is bk? Bk simply means bankruptcy and if you are hungry Burger King. For personal finances you can file a chapter 13 or a chapter 7 bankruptcy. Filing bankruptcy is only for extreme financial circumstances when you debts have put you in a bad financial position. Consult with an attorney when you can no longer make your financial obligations.

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What is a Chapter 13?

A chapter 13 bankruptcy is a type of bankruptcy filing in the United States that is commonly referred to as debt reorganization. If an individual can show ability to pay back some or all of their debts, this option may be the way to go. This can help you keep your home and car in a time of financial crisis.

Filing a chapter 13 bk will usually stop any legal actions against you from your creditors. Once you have Chapter 13 protection, they can no longer call you or sue you. It is up to the lawyer to take the calls and correspondence once the chapter 13 option has been chosen.

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8 Major Misconceptions About Filing a Personal Bankruptcy

Bankruptcy is a big step and can be quite helpful in the process of restoring your credit. Not filing a bankruptcy because of untruths about it can be a mistake. Read about some of the misconceptions of bankruptcy in this article. There is also great information about alternatives to bankruptcy as well.

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I Am Getting A Divorce - What Will Happen To My Assets and Debt?

Save yourself from filing bankruptcy when getting a divorce by using an attorney who understands how to split up your assets and debt. This article serves some basic guidelines about how your marital, or community property might be divided in the event of a divorce.


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