Does filing for bankruptcy stop foreclosure proceedings?

Filing for bankruptcy can stop foreclosure proceedings in Kansas. Bankruptcy is a legal process during which an individual or entity is declared unable to repay their debts. Once an individual or business files for bankruptcy, an automatic stay is issued. The automatic stay prevents creditors from collecting on debts, including any foreclosure proceedings. In Kansas, a person can file for bankruptcy under Chapter 13, which allows a person to establish a repayment plan with their creditors. This plan must be approved by the court and will pay all or part of a person’s debt to creditors over a three to five-year period. Once this plan is approved, the foreclosure proceedings will be halted. Filing for bankruptcy also provides a person with some of their rights, such as the right to remain in their home while the repayment plan is being implemented. During this period, the lender cannot start or continue foreclosure proceedings against the person. To find out if filing for bankruptcy is the best option for stopping foreclosure proceedings, it is recommended that a person consult with an experienced bankruptcy attorney. The attorney can help the person understand their rights and determine if filing for bankruptcy is the best way to prevent the foreclosure.

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Does filing for bankruptcy stop foreclosure proceedings?

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