Many homeowners fear the damage bankruptcy will do to their credit score, which is why many never consider it until it’s their last available option. Filing for bankruptcy does not necessarily have to be about consequences. You can derive many benefits from filing for bankruptcy, and one of them is stopping foreclosure. Filing for bankruptcy will put foreclosure on hold with an immediate effect. When you submit your petition, an automatic stay order goes into effect that suspends every creditor’s activities. The order will be effective until the court finalizes your case. Filing for bankruptcy is sure to give you that relief you need. However, there are various chapters of bankruptcies you can consider.

It would be best if you adequately research your options and find out which of the chapters best suits your financial situation. They are similar in that they can help you stop foreclosure. However, they offer different benefits and relief periods. Chapter 7 bankruptcy is one of the best you should consider. It not only help you stop foreclosure, but it can also allow you to discharge multiple debts. Chapter 7 is best for homeowners who have incurred many debts and seek relief from such debts. Homeowners who wish to let go of their home but couldn’t work out a short sale can also consider this alternative.

Chapter 7 bankruptcy will give you the clean slate you need to get back in control of your finances. After filing for chapter 7 bankruptcy, you can start rebuilding your credit score again, and within a short time, you will be able to secure a new mortgage to buy another house. Chapter 7 gives you an opportunity most other chapters of bankruptcy did not offer. However, if you still want to keep your home, you can consider other chapters to prevent unnecessary stress.