Can bankruptcy stop foreclosure? The general answer to this is yes it can. A Chapter 13 bankruptcy filing can immediately stop creditors from pursuing any debt collection action against you. This includes foreclosure proceedings. But it may not stop it totally if you don't fulfill all the requirements.
Because of the large number of potential foreclosures right now, banks are doing everything that they can to keep a house out of foreclosure. If you are only a couple of months behind on your mortgage payments, talk to your lender immediately to try and work out a plan before any action is taken. Once your mortgage becomes more than 90 days past due, it is harder for a traditional lender to work out a solution for you.
If your mortgage is further past-due than this, and foreclosure proceedings have been started, there are still other options besides bankruptcy. After talking to a professional, if you feel that bankruptcy is your only option, go about it with a clear conscience. A lot of times people failed to pursue this option because they feel that it is wrong to file bankruptcy. But if you want to keep your house bankruptcy can stop foreclosure.
How can bankruptcy stop foreclosure? When you file you are telling the courts that you were willing to work out a payment plan to pay off the arrears of your mortgage. This can also work for an automobile that is in danger of being repossessed or has been repossessed. Chapter 13 allows you the opportunity and the time to get back on track.
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