Does filing for bankruptcy stop foreclosure proceedings?

Filing for bankruptcy can help stop foreclosure proceedings in North Carolina. Under the Bankruptcy Code, when a person files for bankruptcy, an "automatic stay" is triggered. This stay is a court order that prohibits creditors from taking any collection activity, including foreclosures, against a debtor. Once the automatic stay is in place, the debtor has an opportunity to work on a repayment plan or debt discharge through the bankruptcy proceedings. However, bankruptcy does not guarantee that foreclosure proceedings will be stopped. A bankruptcy filing may only delay the foreclosure for a period of time. In some cases, a lender may be able to get permission from the court to continue foreclosure proceedings, even though a bankruptcy is in progress. For those looking for a more permanent solution, Chapter 13 bankruptcy is the best option. Through this chapter, a person can create a repayment plan with the lender that will allow them to keep their home. Through this process, foreclosure proceedings can be stopped and the person can keep their home. It is important to note that bankruptcy is not a sure-fire solution to stop foreclosure proceedings. It is important to consult with an attorney to discuss the best option for their particular situation. An attorney will be able to explain the various options available, and can help someone understand the consequences of filing for bankruptcy.

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Does filing for bankruptcy stop foreclosure proceedings?

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