Does filing for bankruptcy stop foreclosure proceedings?

Filing for bankruptcy can often be an effective way to stop foreclosure proceedings in Massachusetts. Bankruptcy law gives debtors the opportunity to make arrangements with their creditors to pay back all or part of their debt, while protecting them from creditor collection efforts. When a debtor files for bankruptcy, an automatic stay is put in place. This stay prevents creditors from contacting the debtor or taking any actions to collect on the debt, including initiating foreclosure proceedings. When a debtor files for bankruptcy, the court oversees their debt repayment plan or liquidation of assets. During this time, the lender is prohibited from moving forward with foreclosure proceedings, giving the debtor an opportunity to catch up on their payments. Depending on the type of bankruptcy, filing may also allow the debtor to discharge certain types of debt, which could result in further reducing or eliminating the outstanding balance on their loan. Although filing for bankruptcy may provide a reprieve from foreclosure proceedings, it is not a one-size-fits-all solution. Depending on the type of bankruptcy filed, the amount of debt owed, and the type of debt owed, it is possible for the foreclosure proceedings to continue. It is best to speak with an experienced bankruptcy attorney about the specifics of your situation to determine whether bankruptcy will be an effective tool in stopping the foreclosure.

Related FAQs

Are there any assets that I cannot keep after filing for bankruptcy?
How can I find a qualified bankruptcy attorney?
Can I keep my home when filing for bankruptcy?
Are there any special provisions for filing for bankruptcy as a business?
Is it possible to have a bankruptcy case dismissed?
Are there any special provisions for filing for bankruptcy as a single parent?
What is the difference between a Chapter 11 and a Chapter 13 bankruptcy?
What is a reaffirmation agreement?
What is the difference between discharging and writing off a debt?
How do I fill out the bankruptcy forms?

Does filing for bankruptcy stop foreclosure proceedings?

Related FAQs

Related Blog Posts