Can bankruptcy stop a foreclosure?
There may be no experience that you will ever face that is more concerning than the prospect of losing your home. When you receive the notice from the bank informing you that it intends to initiate foreclosure proceedings, it can be difficult to know where to turn for help. What happens next? What should you do?
At Nowack & Olson, we focus our entire practice on helping people resolve complex debt issues. We are committed to providing people with the information they need to overcome their challenges and regain their financial freedom. This is the first post in a series about stopping foreclosure through bankruptcy, other options that may be available and information that you will find useful as you work to save your home.
Take Action Now To Stop Foreclosure
One option that can provide immediate relief is filing for bankruptcy. Under federal law, all collection activity must stop immediately once the bankruptcy petition has been filed with the court. This includes all demand letters, phone calls, wage garnishments, repossession actions, lawsuits and — most importantly — foreclosure proceedings. Filing bankruptcy to stop foreclosure will be discussed in more detail later in this series.
If you have been notified that your lender intends to foreclose on your home, talk to an lawyer immediately to discuss your rights and legal options. This is a difficult time, and having an objective advocate who understands the law there to assist you can be invaluable. Come back next time when we will begin our discussion about how to stop foreclosure through bankruptcy, starting with some information about how foreclosure works.