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

Filing for bankruptcy during a foreclosure will affect your home differently depending on the type of bankruptcy you file. In general, filing for bankruptcy will likely delay foreclosure proceedings, as the court will need to review your bankruptcy case and tickets before proceeding. In Chapter 7 bankruptcy, or liquidation bankruptcy, your home may be sold in order to pay off all your creditors. The proceeds from the home sale will be used to distribute among creditors. After your creditors are paid, you will no longer be responsible for the remaining debt on your home loan. In a Chapter 13 bankruptcy, or reorganization bankruptcy, you may be able to keep your home by extending the length of time you have to pay off the loan and making payments to the court, which will go towards paying off your creditors. During the duration of your payment plan, foreclosure proceedings will be frozen. This means that, as long as you keep up with payments, you will remain in your home. Filing for bankruptcy does not necessarily mean that you will be able to keep your home, but it may help you form a payment plan and better manage your debts. It is important to seek the help of a qualified attorney to help you navigate the legal aspects of your bankruptcy case.

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