Does filing for bankruptcy stop foreclosure proceedings?

In Indiana, filing for bankruptcy can be a way to stop foreclosure proceedings. However, it is important to understand that the effects may be temporary. When someone files for bankruptcy, an automatic stay is placed on all collection activities, including foreclosure proceedings. This means that the lender can not continue the foreclosure process while the bankruptcy is in effect. However, it is important to note that the automatic stay is not permanent. The lender can apply to the court for permission to proceed with foreclosure by filing a motion to lift the stay. In addition, the stay will only remain in effect if the debtor makes payments through a Chapter 13 bankruptcy repayment plan. Otherwise, the stay will be lifted and the foreclosure process could resume. Therefore, while filing for bankruptcy in Indiana can be an effective way to stop foreclosure proceedings, it is important to understand that it is only a temporary solution. It is important to discuss the options with a qualified bankruptcy attorney to determine the best course of action for each individual situation.

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Does filing for bankruptcy stop foreclosure proceedings?

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