Losing your home can have such a terrific impact on your financial situation, especially if you are having trouble putting your finances under control. Having your home foreclosed will only drag you deeper into financial difficulties. You can also end up with liabilities from your lender even after a foreclosure sale has been concluded. Such penalties can include deficiency judgment, which occurs when your lender sue you to pay for any amount not covered by the sale of your home. Not to mention the impact foreclosure will have on your credit score, it is reasonable to take steps towards stopping foreclosure. Most loss mitigation alternatives are not favorable to homeowners as most homeowners because many lenders use this avenue to increase the interest rate, making many homeowners turn them down. However, you’re not without options; you can file for bankruptcy to stop foreclosure.

When you submit your petition to the court, an automatic stay order goes into effect. The order serves to prevent all forms of lender’s collection activities, which include foreclosure. As soon as your lender is aware that you have filed for bankruptcy, they must immediately stop the foreclosure process. All of this can happen within 24 hours. Filing for bankruptcy is one of the fastest ways to stop foreclosure. It can help you stop foreclosure a few minutes to the conclusion of a foreclosure sale. However, you do not want to wait until it’s almost too late before taking action.

Depending on the chapter of bankruptcy you filed, you can have some of your debts discharged to relieve the burden on you. Chapter 13 bankruptcy allows you to get back on track with your payment with a new repayment plan. You will also be able to keep your home and available a lot of liabilities. Contact your lawyer immediately and take action before it’s too late to save your home.