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

If you file for bankruptcy while in the process of a foreclosure, it depends on the type of bankruptcy you file. If you file for Chapter 7 bankruptcy, the filing will stay the foreclosure process until the court determines which of your debts you must pay. This could stop the foreclosure process for a few months. However, if the lender is granted permission to proceed with the foreclosure, the sale of your home could still occur. If you file for Chapter 13 bankruptcy, it may be possible to keep your home. You must usually propose a plan for repayment of your mortgage over a three to five-year period. This plan must be approved by the court and the lender before it becomes effective. If the plan is approved, the foreclosure process is put on hold while the repayment plan is in effect. If you are able to make your payments on time during the repayment period, you may be able to keep your home. When filing for bankruptcy during a foreclosure, it is important to seek the advice of an experienced bankruptcy attorney or credit counselor. The Wisconsin Housing and Economic Development Authority (WHEDA) also offers counseling services for homeowners facing foreclosure. These resources can help you better understand the legal and financial implications of bankruptcy and how it applies to your foreclosure situation.

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

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