Does filing for Chapter 7 Bankruptcy stop foreclosure?

Yes, filing for Chapter 7 Bankruptcy can stop foreclosure in Utah. This is because filing for Chapter 7 Bankruptcy creates an “automatic stay” which is a court order that requires creditors to stop all collection activities, including foreclosure proceedings, so that a debtor can gain the advantage of a discharge. However, the automatic stay isn’t necessarily permanent; the court can lift the stay or modify it in certain circumstances. In addition, filing for Chapter 7 Bankruptcy in Utah may not provide an immediate solution for the debtor’s foreclosure situation. This is because, in order for the automatic stay to be effective, Chapter 7 Bankruptcy must be filed prior to the foreclosure sale date or the court may not be able to stop the foreclosure. It is important to note that filing for Chapter 7 Bankruptcy does not eliminate the debt; the debtor is still liable for any debts that are not discharged. In short, filing for Chapter 7 Bankruptcy in Utah can stop foreclosure, but it depends on when the filing is made and whether or not the debts will be discharged. It is important to note that if Chapter 7 Bankruptcy is filed after the foreclosure sale date, the automatic stay may not be effective and the debtor may still be liable for the debts.

Related FAQs

Does filing for Chapter 7 Bankruptcy stop foreclosure?

Related FAQs

Related Blog Posts