Will Bankruptcy Prevent Your Foreclosure?
Many people filing for bankruptcy do so in the hopes of stopping their lenders from foreclosing on their homes. Bankruptcy offers some powerful legal tools to help these people protect their houses and property from being repossessed by their creditors. However, completely preventing a foreclosure is not guaranteed in all cases of bankruptcy.
If your debt has become an uncontrollable burden on you and your family, it may be time to think about filing for debtor protection under Chapter 7 or Chapter 13 bankruptcy. These legal actions may be able to help you save property while clearing out a significant amount of debt. For more information regarding your full range of bankruptcy options, contact the Joliet bankruptcy lawyers of the Law Offices of Stuart B. Handelman, P.C., today by calling 815-722-2201.
Foreclosure Protection in Bankruptcy
When filing for bankruptcy, a debtor is granted what is known as an automatic stay. An automatic stay allows a debtor to pause their lenders’ collection of payments. This includes housing payments, which will cause any foreclosure processes to stop. However, bankruptcy may not offer protection in the following circumstances:
- If a house is already sold
- If a foreclosure notice has already been posted
- If a lender files to lift the automatic stay with the court
In these situations, a person may not be able to prevent the foreclosure of their home. However, a legal advisor can work with a debtor to better understand all of their options when trying to protect their home.
If you’re looking for legal help when dealing with a seemingly immovable mountain of debt, we may be able to get you started on the path to financial freedom. To discuss how bankruptcy may work to protect your property from foreclosure and repossession, contact the Joliet bankruptcy attorneys of the Law Offices of Stuart B. Handelman, P.C., at 815-722-2201 today.