Filing Bankruptcy During a Foreclosure

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If you are facing a mortgage foreclosure that will result in the loss of your home, bankruptcy can stop the foreclosure process.  Entering into a Chapter 13 repayment plan can enable you to cure past due mortgage payments and save your home.

Bankruptcy Can Stop the Foreclosure Process

If you file bankruptcy, it will stop the foreclosure process at any stage of the litigation.  Once you file your bankruptcy petition, the foreclosure cannot proceed until your bankruptcy proceedings are resolved.  Therefore, filing for bankruptcy before a sheriff’s sale can safeguard your home from foreclosure.

File Bankruptcy Before a Sheriff’s Sale

Once a civil court grants a judgment against you for failure to pay your mortgage loan as agreed, the creditor will schedule a sheriff’s sale in order to sell your home.  The creditor will receive the proceeds from the sheriff’s sale and apply it to your outstanding debt.  If you file bankruptcy before a sheriff’s sale, however, the sheriff’s sale will not occur.

Cure Past Due Mortgage Payments

Chapter 13 is the only bankruptcy option available that will permit you to cure past due mortgage payments.  When you enter into a chapter 13 repayment plan, you must commit to making the payments as they become due on any secured debts, as well as curing any payments that you have missed in the past.  This process will permit you to save your home from foreclosure.

Contact a Bankruptcy Attorney for Assistance

As filing bankruptcy in the midst of mortgage foreclosure proceedings can be a tricky process, you should be sure to contact a bankruptcy attorney to assist you with initiating bankruptcy proceedings and stopping the foreclosure litigation.  Only an experienced bankruptcy attorney will be able to assist you in both types of legal proceedings.

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