Practice Areas

Personal and Business Bankruptcy: Chapter 7, Chapter 11, Chapter 13

Does a bankruptcy stop foreclosure?

Including your mortgage loan in your bankruptcy filing will temporarily stop any foreclosure proceedings by the lender. The automatic stay immediately goes into effect. This stops your lender from pursuing collection activities. The bank cannot continue any lawsuit and it cannot have the house sold at a county sheriff's sale. Depending on the type of bankruptcy you file, whether it is Chapter 7, 11 or 13, you will have a property exemption or a reorganization of your loan payments.

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