Will Chapter 7 Bankruptcy Stop Foreclosure?

Author: Hector Milla

Author: Hector Milla

When a person is about to have their home foreclosed upon, they wonder will Chapter 7 bankruptcy stop foreclosure proceedings? The answer is yes. The filing of a bankruptcy, either a Chapter 7 or a Chapter 13 will temporarily stop a foreclosure sale. The filing of the bankruptcy can be done as late as the day before the scheduled trustee sale. Natalia Osorio Editor of the "Loan Modification Foreclosure" website -- http://www.LoanModificationForeclosures.com -- pointed out; This will give you more time, approximately 30 days, to find a solution even if you do not intend to go through with the bankruptcy so taking this action can be a preventive measure to save your home if all you need is a little more time In order to continue with the Chapter 7 bankruptcy and have it confirmed to permanently stop the foreclosure, you will need to provide all of your financial information to the bankruptcy court. This will include the disclosure of all of your assets, all of your income resources, and all of your debts. Under oath, you will affirm to the U.S. Bankruptcy Court that you have the income resources to make the required mortgage payments. If you own other assets that can be liquidated, in some circumstances, the court may require the sale of some of those assets to pay your mortgage lender the amount that is past due on your mortgage arrears. You will need to have all your ducks in a row and act quickly because the foreclosing lender will usually not delay in requesting a relief from stay from the bankruptcy court, which if granted, will allow them to proceed with the establishment of a new foreclosure sale date. So will Chapter 7 bankruptcy stop foreclosure permanently? Only if your bankruptcy is confirmed, and you are able to continue with the bankruptcy, so you will need to make your mortgage payments on time; otherwise, the bankruptcy will be dismissed, and the lender will once again begin foreclosure proceedings N. Osorio added. Further information about how to get professional assistance with a mortgage loan modification by http://www.LoanModificationForeclosures.comAbout the Author:

Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.

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