How do I stop foreclosure?
Chapter 13 bankruptcy gives homeowners the opportunity to reorganize their mortgage debt into one manageable payment. In addition, it may provide up to five years to catch up on missed mortgage payments without being charged additional interest. As long as the Chapter 13 is filed prior to the foreclosure auction, Chapter 13 will stop… Read More »
Will bankruptcy stop a foreclosure auction?
Yes, a Chapter 7 or Chapter 13 bankruptcy will stop the foreclosure auction, even if the auction is already scheduled. As soon as your bankruptcy is filed an automatic stay will be enacted. The stay immediately stops all collection activity, including a foreclosure auction.
Can the bank sue me after foreclosure?
Often, after a foreclosure auction there will not be enough funds from the sale to pay the mortgage in full. When this occurs, the bank may sue the borrower for the remaining loan balance. However, Chapter 7 bankruptcy can discharge the full amount of the mortgage loan and end a borrower’s liability to the… Read More »
Can I keep my home if I file bankruptcy?
Yes, homestead (primary residence) is a protected asset in both Chapter 13 and Chapter 7 bankruptcy. Therefore, you may not have to forfeit your home as a condition of the bankruptcy.
