If you find yourself in overwhelming debt and no way out, your home may be facing foreclosure. The idea of losing a home that you worked so hard to own in the first place can be devastating and incredibly stressful. If you are concerned about your home going into foreclosure, you should make sure you assess all of your options. One option that many people fail to remember is that filing for bankruptcy can stop a foreclosure and help you save your home.
As soon as you file for bankruptcy, an automatic stay will come into action, effectively stopping the foreclosure. An automatic stay also requires all other creditors and lenders to stop contacting you about the money you owe them. There isn’t a specific time that you must file for bankruptcy in order to stop your foreclosure, it just must be before the foreclosure sale goes through. So, if the foreclosure sale is scheduled to happen at 11:00 am and you file for bankruptcy at 10:45 am, the foreclosure sale of your home will not be valid.
Additionally, if you are in foreclosure on your home, it is likely that you are facing many other debts as well. As previously stated, the second your bankruptcy petition is filed, no other collection activities are permitted to take place against you. The only debts that will not be eliminated under a bankruptcy are those for income taxes, student loans, restitution for a criminal matter, and spousal and child support.
If you have questions about how you can save your home from foreclosure, contact us today.
If you require experienced legal representation for any of your residential and commercial real estate, bankruptcy, or family law matters, contact the Mark Scollar Law Office today to schedule a consultation.