Filing bankruptcy to stop foreclosure

Desperate times call for desperate measures and unfortunately there are plenty of homeowners in trouble. Also, there seems to be no shortage in the number of people out there that claim they can stop foreclosures and attorneys have joined the bandwagon too. Be very careful if an attorney tells you they can stop foreclosure by filing bankruptcy. That is only half the truth. The other half they don't always tell you is that the lender will ask the bankruptcy court for a stay and 99.99% of the time the bankruptcy judge will grant their request and to your surprise your house gets auctioned off.

Bankruptcy temporarily stops all creditors in their tracks in the beginning of the process. This is to give the court time to sort out the details of the bankruptcy proceedings. If you have loans that are secured to an asset like a house, car, boat, etc. and you're not able to make the payments, the court will allow the creditor to take possession of the secured asset. There are plenty of reputable attorneys that will help you decide if bankruptcy is an option and whether Chapter 7 or Chapter 13 is best for your situation. Bankruptcy will enable you to either repay or discharge your debts, but it does not permanently stop the foreclosure process. If you believe you may need legal assistance and are unsure where to go, the Legal Aid Society may be able to help.