Can bankruptcy stop foreclosure

Can bankruptcy stop foreclosure?
In this financial crisis, foreclosure is a common phenomenon. So how can we stop foreclosure? Can bankruptcy stop foreclosure? Yes, definitely; bankruptcy can stop foreclosure but it should be your last option to choose. There are other options available which can stop foreclosure, like- short sale, loan modification, loan repayment plans, forbearance, deed in lieu of foreclosure etc. If any of these options don’t help you to stop foreclosure then you can choose to file bankruptcy .

How can bankruptcy stop foreclosure?

There are different types of bankruptcy but you can choose to file bankruptcy chapter 7 or chapter-13. You should better hire an experienced bankruptcy attorney who can help you to file the bankruptcy properly. As soon as you file bankruptcy, the creditors cannot harass you and foreclose on your property.

If you file bankruptcy chapter-13 then you will be able to pay off the creditor with an affordable repayment plan made which will be made by the bankruptcy court. It will affect your credit score and you may not be able to get a loan in nest 3 to 5 years but the best thing is that you can avoid foreclosure which can affect your credit score much more than bankruptcy chanter-13.


Bankruptcy chapter 7 is really your last option to choose. It will affect your credit report almost like a foreclosure. Your credit score will be dropped by 250 to 300 points and bankruptcy chapter-7 will be shown on your credit report for 7 to 10 years. All your non exempt properties will be sold to pay off your creditors, but the creditors will not be able harass you or they will not be able to demand the deficiency judgment.

So if you are facing foreclosure then check out all your options available and talk to your lender as soon as possible. If no option suits and your lender is not co-operating with your then filing bankruptcy is the option that you can choose to avoid foreclosure. Hope it helps. Please share your thoughts and feel free to ask if you have any questions in your mind.