Can filing bankruptcy stop foreclosure? 40 Answers as of July 10, 2013

The bank has threatened to foreclose on my house, can I file this week to prevent a foreclosure?

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The Law Office of Marvin Wolf
The Law Office of Marvin Wolf | Marvin Wolf
Bankruptcy stops (stays) most civil court actions, including foreclosure. However, the type of bankruptcy filed can affect how long the stay lasts. Usually, a chapter 13 plan allows you to make catch-up payments over time (up to five years) while staying current on normal monthly payments - it's sort of a judicial debt consolidation and restructuring of your past-due payments. If you file a chapter 7, however, it may be possible for the trustee to sell your house to recover excess equity, or for the mortgage company to file a motion in the bankruptcy court to lift the stay to allow them to continue with the foreclosure. A lawyer can determine which type of bankruptcy is best for you, if any. Sometimes, it is worth it to fight the foreclosure action in state court rather than bankruptcy court.
Answer Applies to: New Jersey
Replied: 7/13/2011
Bankruptcy Law Center
Bankruptcy Law Center | Bill Zurinskas
A bankruptcy filing will stop a foreclosure in Colorado. If you file a chapter 7 bankruptcy, the foreclosure will usually be delayed, but not ultimately stopped. If you qualify and file a chapter 13 bankruptcy, you have the right to cure the default over time and permanently stop the foreclosure, as long as your chapter 13 plan is successful. If a 2nd or 3rd mortage holder is threatening foreclosure, you may have more options: Talk to an experienced chapter 13 bankruptcy attorney.
Answer Applies to: Colorado
Replied: 7/13/2011
Financial Relief Law Center
Financial Relief Law Center | Mark Alonso
Filing for bankruptcy will put into force and "automatic stay' which has the effect of stopping a foreclosure sale. Depending on what chapter of bankruptcy you file will depend on how long that automatic stay will last for, and therefore determine how much time the foreclosure would be postponed. If the bank is only threatening foreclosure, you may not want to file just yet. However, if there has been a Notice of Default recorded as well as a Notice of Trustee's Sale recorded (which assigns the sale date) then you may want to consider filing closer to that date to stop the sale. Again, depending on what chapter you file will determine how much longer you can stay in the house, and even keep the house (if you have wages and can file a ch. 13 plan to pay back the arrearages). Another option for you may be to discuss your situation with an attorney who is experienced in loss mitigation and real estate loan workouts, as there may be some good options for you in that sense.
Answer Applies to: California
Replied: 7/13/2011
Law Offices of Sheryl S. Graf
Law Offices of Sheryl S. Graf | Sheryl S. Graf
Filing for Bankruptcy automatically stays collection activity, including foreclosure proceedings. The information presented is general in nature and should not be construed to be formal legal advice, nor the formation of a lawyer/client relationship.
Answer Applies to: California
Replied: 7/13/2011
The Port Law Firm
The Port Law Firm | Edward Port
The filing of a bankruptcy can prevent the lender from foreclosing. Prior to filing you must have a plan. If you are trying to modify than you could look into filing a chapter 13 bankruptcy which can help you catch up on the arrears of the mortgage . On the other hand, if you where to just file a chapter 7, and did not modify the lender would ultimately continue with the foreclosure.
Answer Applies to: Florida
Replied: 7/13/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Timing here is everything. Yes it will stop the foreclosure. See a lawyer to make sure you get it right.
    Answer Applies to: California
    Replied: 7/13/2011
    Eric J. Benzer, Attorney at Law
    Eric J. Benzer, Attorney at Law | Eric Benzer
    Yes. But not prevent foreclosure forever.
    Answer Applies to: Maryland
    Replied: 6/10/2013
    Rosenberg & Press
    Rosenberg & Press | Max L. Rosenberg
    Yes. An automatic stay will enter to stop any lawsuit. However, you would be well advised to hire or consult with an attorney to properly schedule and strategize the timing of filing to maximize your options and time in the house. Thanks for tuning in!
    Answer Applies to: Connecticut
    Replied: 7/13/2011
    Apple Law Firm PLLC
    Apple Law Firm PLLC | David Goldman
    yes, but generally you have time to file a bankruptcy form the time a bank threatens to file a foreclosure.
    Answer Applies to: Florida
    Replied: 7/13/2011
    Law Offices of Virginia E. Fortunato
    Law Offices of Virginia E. Fortunato | Virginia E. Fortunato
    Yes, filing a bankruptcy will stop a foreclosure (at least temporarily). When you file bankruptcy, an automatic stay goes into effect. It is like an invisible shield that comes down around you and all of your assets. In a Chapter 7 bankruptcy the mortgage company will often move to vacate the automatic stay to continue with a foreclosure. What is your plan? Are you filing a Chapter 13 Bankruptcy so that you can catch up on the mortgage arrears? I cannot comment further without additional facts.
    Answer Applies to: New Jersey
    Replied: 7/13/2011
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    Chapter 13 stops foreclosure and helps you reorganize the arrears into a payment plan; Chapter 7 provides only a temporary stay against foreclosure and does nothing to solve the problem other than free up income by discharging liability on other personal debts and liabilities.
    Answer Applies to: Indiana
    Replied: 7/13/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    If a foreclosure is not pending then it cannot be started after bankruptcy, until the lender gets permission from the court. If a foreclosure is pending then a lender cannot continue finishing the foreclosure without court permission. Consult an attorney specializing in bankruptcy for a further explanation of how this works.
    Answer Applies to: California
    Replied: 7/12/2011
    Symmes Law Group, PLLC
    Symmes Law Group, PLLC | Richard James Symmes
    Filing bankruptcy will stop your foreclosure. A chapter 7 bankruptcy will just delay the foreclosure process, while a chapter 13 bankruptcy may allow you to make up the payments that you are behind on over a 5 year period.
    Answer Applies to: Washington
    Replied: 7/12/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    Yes.
    Answer Applies to: California
    Replied: 7/12/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    Almost all Chapter 13s and Chapter 7s stop a foreclosure at least for the moment (the rules are different if you filed a previous case). The key thing is what happens next. If you file pro se, you probably lose the home later. With a lawyer, you may be able to use the case to save the house, if you qualify. Having a good lawyer matters. Start there. And do not wait until a few days before foreclosure.
    Answer Applies to: Georgia
    Replied: 7/12/2011
    The Northwest Debt Relief Law Firm
    The Northwest Debt Relief Law Firm | Thomas A McAvity
    If you have already been served with a notice of foreclosure, the filing of a bankruptcy should cancel the foreclosure sale date and force the lender to take additional efforts to foreclose its interest.
    Answer Applies to: Oregon
    Replied: 7/12/2011
    Kevin Bluitt, Attorney at Law
    Kevin Bluitt, Attorney at Law | Kevin Bluitt
    Yes, the filing of a bankruptcy provides an automatic stay. The state court foreclosure action must stop. However, the bank could file a motion with trustee to ask for relief from stay.
    Answer Applies to: Florida
    Replied: 7/12/2011
    Law Office of Xochitl Anita Quezada
    Law Office of Xochitl Anita Quezada | Xochitl Anita Quezada
    You can file to stall the foreclosure. However, the bank can file a motion to be relieved from the stay for non-payment. This stall can buy you time to figure out your options. You really should consult with an attorney.
    Answer Applies to: California
    Replied: 7/12/2011
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    Yes it will stop the foreclosure. Depending on which chapter you file will determine if you keep the home longterm.
    Answer Applies to: California
    Replied: 7/12/2011
    CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE).
    CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE). | Gary Lee Lane
    Up to six months.
    Answer Applies to: California
    Replied: 7/10/2013
    Colorado Legal Solutions
    Colorado Legal Solutions | Stephen Harkess
    A bankruptcy filing will stop foreclosure - temporarily or permanently depending on your situation. A Chapter 7 bankruptcy will only stop foreclosure temporarily. Because you will not be catching up your payments, the bank can finish foreclosure as soon as they get the Court's permission. This can take as little as 30 days to arrange. A Chapter 13 bankruptcy can allow you to provide in your plan to catch up the mortgage arrears and keep your house so long as you are able to make the mortgage payments moving forward as if you were never behind.
    Answer Applies to: Colorado
    Replied: 7/12/2011
    Law Office of J. Thomas Black, P.C.
    Law Office of J. Thomas Black, P.C. | J. Thomas Black
    Yes, if you qualify, it is possible to file bankruptcy to stop a foreclosure. Here in Texas, foreclosures can only occur on the first Tuesday of a given month. But I would consult a bankruptcy attorney soon about your options. Assuming you qualify, Chapter 13 allows you to stop the foreclosure and catch up the delinquent payments over a long period of time, as well as dealing with your other debts.
    Answer Applies to: Texas
    Replied: 7/12/2011
    Tucker Legal Clinic
    Tucker Legal Clinic | Samuel Tucker
    Yes, a bankruptcy stops a foreclosure. You would probably file a Chapter 13.
    Answer Applies to: Mississippi
    Replied: 7/12/2011
    The Law Offices James Burns
    The Law Offices James Burns | James Burns
    The foreclosure process generally takes at least six months, and sometimes can take more than a year. If the bank is threatening to foreclosure, it has likely not filed a foreclosure lawsuit yet. But, in the event that a foreclosure sale does get scheduled for your house, filing bankruptcy can delay or temporarily prevent a foreclosure sale of your home.
    Answer Applies to: New Mexico
    Replied: 7/12/2011
    Benson Law Firm
    Benson Law Firm | David Benson
    Filing bankruptcy can operate as a tool to delay foreclosure and provide additional time to work out a satisfactory arrangement with the lender. However, it may not necessarily halt the foreclosure in the long run. It is important to consult with a local attorney well versed in both foreclosure defense and bankruptcy to determine which options are available to you and develop a tailored strategy to your particular situation.
    Answer Applies to: Ohio
    Replied: 7/12/2011
    Law Offices of Michael J. Berger
    Law Offices of Michael J. Berger | Michael J. Berger
    Yes. Filing bankruptcy stops foreclosure, at least temporarily. Chapter 11 and Chapter 13 provide the debtor with a way to catch up on back payments over time, potentially solving the foreclosure problem. Chapter 7 gives a temporary stay, but this stay expires when the debtor receives his or her discharge. This typically takes approximately 4 months. In any bankruptcy proceeding, the secured creditor can file a Motion for Relief from Stay and attempt to show that it should be allowed to proceed with the foreclosure, notwithstanding the filing of a bankruptcy. There are certain limits on the automatic stay with regards to debtors that have filed one or more prior bankruptcy proceedings in the past 12 months.
    Answer Applies to: California
    Replied: 7/12/2011
    The Orantes Law Firm
    The Orantes Law Firm | Giovanni Orantes
    Sure. Don't forget to take the pre-bankruptcy class as soon as possible as you have to take it before you are able to file the petition. You must file the petition before the foreclosure sale that is, at least the day before.
    Answer Applies to: California
    Replied: 7/12/2011
    Law Offices of Joseph A. Mannis
    Law Offices of Joseph A. Mannis | Todd Mannis
    Yes, but do you have other debt as well?
    Answer Applies to: California
    Replied: 7/12/2011
    Judith A. Runyon, Esq. Attorney at Law
    Judith A. Runyon, Esq. Attorney at Law | Judith A. Runyon
    It only stops it temporarily.
    Answer Applies to: California
    Replied: 7/12/2011
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