Can I stay in my home if I file for bankruptcy during a foreclosure?

It is possible to stay in your home if you are facing foreclosure and file for bankruptcy in California. Bankruptcy stops foreclosure actions while your bankruptcy case is open, and you can remain in your home until your case is resolved. This is known as the automatic stay and is a great way to stop foreclosure action while you try to work out a payment plan or receive an approval from the court to modify your loan. If you file for Chapter 7 bankruptcy while facing foreclosure, the court will likely order the lender to permanently stop all foreclosure proceedings and allow you to remain in your home until the bankruptcy case is resolved. In some cases, the bankruptcy court may order the lender to reinstate the loan or give you additional time to catch up on your payments. If you file for Chapter 13 bankruptcy while facing foreclosure, the court will likely order a foreclosure sale be postponed. This gives you an opportunity to develop a repayment plan with your lender and work out an agreement to catch up on your payments. If you can stick to the repayment plan, the court can allow you to keep your home. Overall, filing for bankruptcy can be beneficial in helping you remain in your home even during a foreclosure. You should always consult a bankruptcy attorney to discuss the options and the risks associated with filing bankruptcy in California.

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Can I stay in my home if I file for bankruptcy during a foreclosure?

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