Due to the economic crisis and uncertainty of events, many struggling homeowners have come to appreciate bankruptcy. It was considered ‘unhealthy’ for your credit score. However, the foreclosure will do more significant damage than the bankruptcy will do. Chapter 7 bankruptcy is one of the various available chapters of bankruptcy. It is one of the most used chapters of bankruptcy among homeowners. You can use chapter 7 bankruptcy to stop foreclosure in all states. As long as a foreclosure sale has not been concluded, chapter 7 effectively stops a foreclosure. How does it work?

The moment you filed your petition to the court, a ‘stay’ order is given that prevent any act of lender’s collection. Foreclosure is a way your lender attempts to get their money back, and it is also affected by the court’s stay order. Foreclosure is stopped immediately, or the sale date is postponed for at least three months. The order is effective until the court reviews your case, and necessary action is then taken.

Chapter 7 bankruptcy also has a lot of benefits that make it popular among homeowners. One of which is debt discharge. With chapter 7, most of your debts will be cleared off your account and forgiven. This might require that most of your properties are sold to pay off your debt, which usually includes your home. However, if you have incurred multiple debts, and need a fresh start, consider filing for chapter 7 bankruptcy.

To prevent unnecessary liabilities and for the best result, have a foreclosure or bankruptcy attorney help you with the process. It can be a little complicated, but a good lawyer will know how to help you stop foreclosure. The earlier you take action, the better.

Do not waste anymore time. Contact your lawyer immediately and stop foreclosure on its track.