I Have a Foreclosure Date. If I File Bankruptcy, Will Bankruptcy Stop My Foreclosure?
Foreclosure is probably one of the biggest reasons people seek refuge in bankruptcy. The automatic stay, or the protection that the US Bankruptcy Court orders when a bankruptcy case is filed halts all creditor action. It will stop all creditor action as soon as a case is filed, and if you are facing a foreclosure, that action must immediately cease by law.
If you have a foreclosure date set, seek legal help immediately. Do not wait until the day before the foreclosure sale to contact an attorney. If you wait until the last minute it might be too late. Why? If there is a sale the creditor must have notice before the sale takes place. If a case is filed but the mortgage lender doesn't get notice, it could be too late. If for example, you file a bankruptcy case the date of the foreclosure sale yet don't have enough time to give the creditor notice, and the home is sold at auction, it is possible that the sale may not be voided, and the home would be lost. Always file with enough time to give the creditor notice.
Keep in mind also, that if a previous bankruptcy case has been filed within a certain amount of time, you may not be eligible for the automatic stay to protect the home, or the protection could be limited. For example if you have a previous case that was filed within a year of the new case you are about to filed or have filed, you are only eligible for 30 days of protection. Make sure you speak to a competent bankruptcy attorney who knows the rules well, if any of the above circumstances apply to you. Feel free to request contact from us on this website, or give us a call at 480-355-1377.
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