If you’re facing foreclosure, you may be trying to think of different ways to keep your home. You know that you have some financial problems to sort out, but you don’t want your family to lose the place where they live, and you feel that there must be a solution.
One thing you’ve considered is declaring bankruptcy. Is this going to stop the foreclosure from happening?
It starts with an automatic stay
Bankruptcy can certainly help, and the first way that it does so is by putting an automatic stay on the foreclosure case and any other collection actions that may be pending against you. The automatic stay will be lifted when your bankruptcy case has concluded, so it’s not a permanent solution, but it does mean that the bank cannot take your home until you have gone through bankruptcy. Since that case is on pause, it will likely take weeks or months for the foreclosure to happen even after the bankruptcy case is over.
You may be able to reorganize your budget
By declaring bankruptcy, you may be able to eliminate some of your debt and reorganize your budget so that you can pay off what you owe. Chapter 7 bankruptcy will liquidate some of your assets, for instance, and then many of your debts will be forgiven. This may mean that you now have enough money in your monthly income to pay the mortgage, allowing you to keep your home long-term.
Exploring your options
Deb can be very complicated, but there are always options that you can use. Make sure you explore them carefully and think about what will work best in your situation.