Juan Lozano | Co-Founder
Nov 15, 2022
Don't let foreclosure take your home, consider using bankruptcy filing as a solution to take control of your finances and protect your property.
One of the options available to individuals facing foreclosure is filing of bankruptcy. This legal process allows individuals to declare themselves financially insolvent and unable to meet their current financial obligations. Depending on the individual's circumstances and the type of bankruptcy filed, they may be granted a fresh start or the opportunity to reorganize their debts into a more manageable structure. In either scenario, the filing of bankruptcy will result in the suspension of the foreclosure proceedings on the individual's home.
It is important to note that a lender may challenge the suspension of the foreclosure proceedings in bankruptcy court. However, this action cannot be taken until a minimum of 30-60 days have elapsed from the date of the filing. The advantage of this delay for the borrower is that it provides additional time to seek a resolution to the delinquent mortgage issue. There are two main types of bankruptcy, Chapter 13 and Chapter 7, which will be discussed in further detail in the subsequent sections.
Chapter 13 Bankrupsy