Does filing for bankruptcy stop foreclosure proceedings?

Yes, filing for bankruptcy can stop foreclosure proceedings in Virginia. When a person or business files for bankruptcy, a court order called an “automatic stay” is issued. This order stops creditors from taking any collection actions, including foreclosure proceedings. As long as the automatic stay is in effect, the foreclosure cannot move forward. However, if a creditor wishes to challenge the automatic stay and continue the foreclosure proceedings, they may file a motion for “relief from the stay.” When the motion is made, the court may decide to lift the stay, allowing the creditor to proceed with the foreclosure. The court may also decide to keep the stay in place and allow the automatic stay to remain in effect. If an individual or business wishes to keep their home, they may also file a “Reaffirmation Agreement” as part of their bankruptcy proceedings. This agreement allows the debtor to keep the home by re-committing to repay their loan. In conclusion, filing for bankruptcy can stop foreclosure proceedings in Virginia in most cases. However, the automatic stay is not permanent and creditors may challenge the stay in court. It is also important to be aware that filing for bankruptcy will not necessarily stop foreclosure proceedings in all cases and may not provide the desired outcome of keeping the home.

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Does filing for bankruptcy stop foreclosure proceedings?

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