Does filing for bankruptcy stop foreclosure proceedings?

Yes, filing for bankruptcy can potentially stop foreclosure proceedings in Maryland. This is because bankruptcy law provides debtors with two powerful tools for dealing with foreclosure: the automatic stay and confirmation of a Chapter 13 repayment plan. The automatic stay serves as an immediate injunction that requires a lender to immediately cease from initiating or continuing any foreclosure proceedings against a debtor. Without a discharge of the underlying debt or the lender obtaining relief from the stay, the stay will remain in place for the duration of the bankruptcy case. The confirmation of a Chapter 13 repayment plan can also serve to stop foreclosure proceedings in Maryland. When a Chapter 13 plan is confirmed, a payment plan is created that requires the debtor to make monthly payments to the bankruptcy trustee, who in turn pays back the debts to the lender over a certain period of time. When a debtor is able to pay the entire amount due to the lender through their Chapter 13 plan, the lender must first obtain relief from the bankruptcy court before it can proceed with its foreclosure proceedings. Overall, filing for bankruptcy can temporarily halt or even prevent foreclosure proceedings in Maryland. Bankruptcy law provides debtors with the tools of an automatic stay and Chapter 13 repayment plan to assist them in either stopping or settling their debts.

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Does filing for bankruptcy stop foreclosure proceedings?

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