Can filing bankruptcy stop a foreclosure sale and save your home?
The short answer to this is yes. So long as the sale confirmation has not occurred a bankruptcy filing will stop the process in its tracks. I have filed numerous cases where a family’s home was to be sold at a sheriff’s sale the following day. The moment you file a bankruptcy a court injunction known as an automatic stay kicks in. This injunction stops all collection activity immediately. Simply put, your creditors can no longer do anything to bother or contact you nor can they take anything that is yours. This includes selling your home at a sherrif’s sale.
Now, it is important to consider all of the repurcussions of filing bankruptcy just to stave off a sherrif’s sale on your home. You will have to deal with the back payments and interest owed. This can best be done by filing a Chapter 13 bankruptcy. In that type of bankruptcy you will be able to get caught up on your payments and any penalties over time (36-60 months). You will likely be able to pay the missed payments and fees interest free. But, you will also have to make the regular payments as well. So, before you file it is important for us to go over your budget and see if this will be possible
If you are facing a foreclosure, the best thing you can do is visit with me as soon as possible. The sooner that you and I deal with the problem the more options will be available to you. In some cases you might avoid a bankruptcy entirely. Schedule your appointment today (405) 255-2380.