Does filing for bankruptcy stop foreclosure proceedings?

In Wisconsin, filing for bankruptcy can stop foreclosure proceedings, but it depends on the type of bankruptcy. Generally speaking, if you file for bankruptcy under Title 11 of the United States Bankruptcy Code (usually referred to as Chapter 7 or Chapter 13 bankruptcy), the court may issue an order called an "automatic stay" that halts all collection activities, including foreclosure proceedings. This automatic stay remains in effect until the bankruptcy case is closed, dismissed, or a specific court order lifts the stay. Therefore, if you file for bankruptcy before the foreclosure sale, the foreclosure will be stopped until the bankruptcy is resolved. However, it is important to understand that filing for bankruptcy does not necessarily stop foreclosure. In Wisconsin, a mortgage lender may request that the court lift the stay on the foreclosure if the homeowner is not making payments on the loan, even after filing for bankruptcy. This would allow the lender to proceed with the foreclosure. Furthermore, if the homeowner is able to make the payments on time, the bankruptcy court may deny the lender’s motion to lift the stay, and the foreclosure process will be halted. In short, filing for bankruptcy in Wisconsin may stop foreclosure proceedings, but it is not a guarantee. Ultimately, the court will decide whether the stay should be lifted and if the foreclosure process should proceed or not.

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Does filing for bankruptcy stop foreclosure proceedings?

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