Does filing for Chapter 7 Bankruptcy stop foreclosure?

Filing for Chapter 7 Bankruptcy in Virginia can help stop foreclosure. In Virginia, Chapter 7 Bankruptcy stops the foreclosure process by providing an automatic stay to the debtor. An automatic stay is a court order that stops creditors and lenders from collecting debts or taking any other action against the debtor during the bankruptcy process. This means that the lender cannot proceed with the foreclosure while the bankruptcy is pending. Once the bankruptcy is filed, the debtor can also use Chapter 7 Bankruptcy to eliminate certain debts, such as credit card debt and medical bills. This can help free up more funds to make payments on the delinquent mortgage payments. The court may also consider lowering the amount due on the mortgage or setting up a repayment plan that is more affordable for the debtor. While Chapter 7 Bankruptcy can help stop the foreclosure process, it is important to note that filing for bankruptcy does not eliminate the debt. The debt will still exist and will need to be paid back in some form. Additionally, it is important to note that while the foreclosure process is stopped, it may be restarted once the bankruptcy is discharged. It is important to keep up with payments on the mortgage while the bankruptcy is being processed in order to avoid foreclosure.

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Does filing for Chapter 7 Bankruptcy stop foreclosure?

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