Can Bankruptcy Stop a Foreclosure?

Most of the time, yes. Foreclosure is the legal process that a mortgage company goes through to take your home from you. It can be complicated and confusing in the court system and having an experienced attorney can help you make sure your legal rights are protected. When a foreclosure is filed, if you do nothing to stop it then the mortgage company will end up forcing the home through a sheriff sale and you will lose it. Once the auction occurs, the court must still "approve" the sale but that is virtually automatic. We can stop most foreclosures at any time before the auction date by just filing a bankruptcy. In fact, Chapter 13 bankruptcy actually can allow you to stop a foreclosure completely and can give you months or even years to clear arrearage (the late payments) on the mortgage. So long as you stay current in your Chapter 13 payment plan, then the mortgage company may not foreclose on your home. Still, the law is always changing in bankruptcy and you should talk with us long before any auction date notice comes up, so we can time the steps we must take in order to best protect your rights and help you keep your home.

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