What happens to my home if I file for bankruptcy during a foreclosure?

If you file for bankruptcy during a foreclosure in Massachusetts, your home may be subject to foreclosure. Depending on the type of bankruptcy you file, your home may be protected from foreclosure or may be subject to sale. For example, if you file a Chapter 13 bankruptcy, your home may be protected from foreclosure. This is because Chapter 13 allows you to create a repayment plan to pay off your creditors over three to five years, and the foreclosure process is suspended while this plan is in effect. Once you’ve fully paid back the creditors, the foreclosure will no longer be an issue. However, if you file for Chapter 7 bankruptcy, your home may be subject to foreclosure. This is because Chapter 7 does not allow for a repayment plan. Instead, it requires that you liquidate or sell certain assets in order to pay off your creditors. If you don’t have any assets to liquidate, the foreclosure process will proceed. It’s important to note that filing for bankruptcy is a serious matter, and you should consult a lawyer or specialist to make sure you are taking the right steps. Bankruptcy can help protect your home in some circumstances, but it is not a guarantee.

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What happens to my home if I file for bankruptcy during a foreclosure?

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