Can Filing for Bankruptcy Stop a Foreclosure?
- McMann, P.A.
- Mar 7
- 2 min read
If you're behind on mortgage payments and facing foreclosure, you may be wondering if filing for bankruptcy can help save your home.
At McMann, P.A., Attorney Mark McMann assists homeowners in Lakeland, Tampa, Orlando, and throughout Central Florida in using bankruptcy as a tool to stop foreclosure and regain financial stability.
How Foreclosure Works
Foreclosure is the legal process that allows a lender to take possession of a home when a borrower fails to make mortgage payments. This typically happens after multiple missed payments, and in Florida, lenders must go through the judicial foreclosure process, meaning they must file a lawsuit to foreclose on the property.
How Bankruptcy Can Help Stop Foreclosure
When you file for Chapter 7 or Chapter 13 bankruptcy, the court issues an automatic stay, which immediately halts all collection activities, including:
Foreclosure proceedings
Evictions related to foreclosure
Phone calls and harassment from creditors
Lawsuits for unpaid debts
Chapter 7 vs. Chapter 13: Which One Is Best for Stopping Foreclosure?
Both Chapter 7 and Chapter 13 bankruptcy can temporarily stop foreclosure, but they work in different ways:
Chapter 7 Bankruptcy and Foreclosure
Provides temporary relief through the automatic stay.
Does not eliminate mortgage debt if you want to keep the home.
If you are too far behind on payments, the lender may request the court to lift the automatic stay and proceed with foreclosure.
Best for those looking to eliminate other debts to free up income but may not keep their home.
Chapter 13 Bankruptcy and Foreclosure
Allows you to catch up on missed mortgage payments through a court-approved repayment plan.
Stops foreclosure permanently if you continue making both past-due and current payments.
Best for homeowners who have steady income and want to keep their home.
When Should You File for Bankruptcy to Stop Foreclosure?
If your lender has filed a foreclosure lawsuit or scheduled a foreclosure sale, you need to act fast. Filing for bankruptcy before the sale date is crucial to taking advantage of the automatic stay.
Let McMann, P.A. Help You Save Your Home
Foreclosure is stressful, but you don’t have to face it alone. McMann, P.A. is dedicated to helping Central Florida homeowners explore all available options, including bankruptcy, to protect their homes and financial future.
Mark D. McMann
Comments