Completely. Absolutely. A bankruptcy case in Chapter 13 will potentially help you save a home from Foreclosure. Filing stops selling and allows you to pay late payments when handling your other debts.

The Bankruptcy can assist if you face foreclosure. Foreclosure may be held for a few months by filing a for Chapter 7 bankruptcy application. If you want to save your home, the answer may be to solve the bankruptcy problem in Chapter 13.

A clause called compulsory residency in bankruptcy law prohibits most forms of debt collection by creditors, including collection calls, deductions, foreclosures, evictions, and legal proceedings. The automatic stay is significant when you file your bankruptcy case, except in rare cases.

Since debtors tend to hope for the last minute, foreclosures often occur just before the expected auction deadline. In the past, it was always a race: the bank secretary hurried to the district court to finish the mortgage sale while a lawyer raced to federal court for bankruptcy. Of a business. Of a business.

This race is not so hectic today. Lenders may have to be in court to sell, but the vast majority of bankruptcy applications are filed online. Even if the auction were to occur, a bankruptcy petition would cancel all sales the bank retains as long as the debtor (liquidator) declares a bankruptcy case before Foreclosure (or, in some instances, before the bank being registered in the county registry).

The Bankruptcy of both Chapter 7 and Chapter 13 triggers an automatic stay and a halt to a foreclosure. However, the filing of a case under Chapter 7 allows only temporary relief, as the stay is lifted after the Verdict, usually four to six months after filing. For a more permanent solution, you could file a lawsuit for Chapter 13.

If you owe a large amount and don’t have enough income to cover your monthly payment, bankruptcy Chapter 13 may not be your option. Please meet a bankruptcy lawyer to learn more.