Does filing for bankruptcy stop foreclosure proceedings?

Yes, filing for bankruptcy stops foreclosure in California. The filing of a bankruptcy case is like a shield protecting you from debt collectors, like the bank that is trying to foreclose on your home. When you file a bankruptcy, the court issues an order known as the "automatic stay". The automatic stay immediately stops all collection efforts, including foreclosure proceedings. If you want to keep your home, you will have to make your mortgage payments, although you may be able to modify your loan or eliminate certain debts so that you can make the payments. Your attorney will be able to advise you on the specific details of how bankruptcy can help you in your particular situation. When you file for bankruptcy, the lender must provide you with time to catch up on your loan payments. The lender should also be willing to work with you on a repayment plan or loan modification if you need it. This process is called a "loan modification" and can help you to keep your house if you are able to make regular payments again. In California, filing for bankruptcy can stop foreclosure proceedings and provide you with time to get back on track with making your loan payments. It is important to speak to a qualified attorney about your situation as soon as possible so that you can decide the best course of action for you.

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Does filing for bankruptcy stop foreclosure proceedings?

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