Bankruptcy can delay a foreclosure
Sunday, October 7th, 2007Q: Because of illness and unemployment, we are behind three months on our mortgage payments. The loan servicer has been very uncooperative when we tried several times to make partial payments.
Last week, the loan servicer began the foreclosure process by recording the legal documents. So far, we have heard from three lawyers who specialize in bankruptcy. They tell us to file bankruptcy to stop the foreclosure. Is this a smart decision?
A: Filing either Chapter 13 bankruptcy reorganization or Chapter 7 straight bankruptcy will delay the foreclosure sale of your house. When you file bankruptcy, an automatic stay stops creditors from collection efforts, including a foreclosure sale.




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