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Can bankruptcy stop foreclosure?

Posted by Ellen Brown | Mar 22, 2024

Yes, a CHAPTER 13 bankruptcy may stop foreclosure. Foreclosure is a legal process where a lender tries to take ownership of a home because the owner has fallen behind on their mortgage payments. If you file for bankruptcy, an automatic stay will go into effect. This means that most collection activities, including foreclosures, must stop while your bankruptcy case is ongoing.

Immediately after you receive any notification about foreclosure you should contact a bankruptcy attorney.

If you're facing a foreclosure and considering bankruptcy, it's important to talk to a bankruptcy lawyer to understand how bankruptcy can help stop the foreclosure and provide relief from your debts.

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