Does filing for Chapter 7 Bankruptcy stop foreclosure?

Filing for Chapter 7 Bankruptcy in Washington will not necessarily stop a foreclosure. Bankruptcy may make it temporarily difficult for a financial institution to take further steps against the debtor, but it will not necessarily eliminate the debt or relieve the debtor of the obligation to pay it. The bankruptcy process can be used to buy time and can potentially reduce the amount of the debt owed, but it may not stop the foreclosure process. In some cases, filing for Chapter 7 Bankruptcy will provide enough of a delay to allow the debtor additional time to either negotiate a payment plan with the mortgage lender or find another way to pay off the debt. In other cases, Chapter 7 Bankruptcy can discharge the debt, meaning the debt is no longer owed and the foreclosure process will halt. However, filing for Chapter 7 Bankruptcy does not guarantee that the foreclosure process will stop. The financial institution will generally still have the right to pursue foreclosure, even if the debt has been discharged. The only way to ensure the foreclosure will stop is to negotiate with the lender or find an alternate way to pay off the debt.

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Does filing for Chapter 7 Bankruptcy stop foreclosure?

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