Automatic Stay Can Stop Foreclosure

Stop Foreclosure! There is relief to save homes from foreclosure. The bankruptcy processes under some chapters have a solution to prevent creditors from coming after the home. There are many reasons why one becomes late or behind on their mortgage payment. Always feeling things will never catch up and then another disaster happens in life? There is solution to a fresh start and being able to keep the house.

Some situations to consider bankruptcy include:

• Behind on mortgage payments
• Overwhelming Creditors
• Massive outstanding debt
• Medical Bills
• Unemployed with bills

If a person falls behind on their home loan, then the mortgage company will take steps to collect on the unpaid debt. A common option for mortgage companies is foreclosure. However, the homeowner can file for bankruptcy to save their home from foreclosure. These types of foreclosure include:

• Chapter 13 Bankruptcy (gives the homeowner the ability to catch up on issued payments)
• Chapter 7 bankruptcy (allows an automatic stay and may prevent immediate foreclosure)

Automatic stay is an injunction in filing of a bankruptcy case. This court action prohibits collection against the debtor. Any property deemed exempt by the court, the debtor is allowed to keep free and clear after bankruptcy without any future attempts from creditors to collect on prior debt. The court may make the place of residents exempt from collections and foreclosure will not take place.

When property is exempt it is removed from the bankruptcy estate and is not accessible to pay the claims of creditors. From the statutory lists of exemptions under the state law the debtor selects the property that is to be exempted. The debtor gets to keep exempt property for use after bankruptcy and make a new beginning.

• If you may be facing foreclosure or already in the process, Consult Your Case for Free with a local certified Foreclosure Attorney to see your best options you have available to avoid Foreclosure.

Content Related to Topic

• Does Bankruptcy Stop Foreclosure?
  What you need to know about filing Bankruptcy during a foreclosure.
• Negotiating Your Loan with Your Lender
  A guide on how to prepare for negotiating your mortgage with your lender.
• Wrongful Foreclosures
  Are you foreclosing for a reason that wasn't exactly your fault? Be aware of your rights.