Does Filing For Bankruptcy Stop Foreclosure?

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If you are currently facing foreclosure, you are probably wondering if filing for bankruptcy can offer you protection from the consequences of a foreclosure or better yet, completely stop it. So does filing for bankruptcy stop foreclosure and is it possible to utilize bankruptcy to avoid foreclosure?

Whether you are filing a Chapter 7 or a Chapter 13 bankruptcy, you can expect the court to issue an order for relief for you. This order is issued automatically and there is no need to request for it. The order comes with an temporary automatic stay, which instructs creditors to stop collection activities right away. As to the question that states, “Can bankruptcy stop foreclosure?” the answer is no but it will surely extend the time until the property is finally foreclosed upon. Once the order for relief is issued by the court, the foreclosure process will be postponed. For example, if your home has been included in a foreclosure auction sale, it may be postponed for 2 to 4 months while your bankruptcy filing is pending.

Of course, this will depend on a couple factors. If your bank is granted permission by the bankruptcy court for the sale of your home, you may get less than 3 or 4 months temporary stay. Regardless, filing for bankruptcy will definitely help delay the foreclosure process.

Homeowners must understand that having their house sold at a foreclosure auction means their credit score is damaged for 7 years making it super difficult to rent an apartment, get a car loan, apply for credit cards, and even attain employment as a police officer, fireman, and many other state and municipal jobs. Filing for Bankruptcy will stay on your credit report for 10 YEARS, producing very similar troubles as foreclosure.

We at Queens County Estates do not want to see anyone choosing either of these two harmful and life debilitating choices. We can purchase your home in cash in 10 days and help pay off your lender and remove foreclosure and thoughts of bankruptcy from your life!

Call Queens County Estates Today! 917-318-0987