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What effect does Bankruptcy have on a Foreclosure?

Melbourne, FL |

I'm in the State of Florida. If I file Bankruptcy I am not trying to save my house. I can't afford the mortgage payments either.

If I declare bankruptcy just before the mortgage company files a Foreclosure, what effect does it have? Will it get the Foreclosure filing postponed and pushed back? For about how long?

If I declare bankruptcy just AFTER the mortgage company files a Foreclosure, what effect does it have? Does it freeze the Foereclosure with no further action for awhile? For about how long?


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Attorney answers 1


Whether you file before or after an action of foreclosure is commenced, the filing of bankruptvy temporarily stays all debt collection, including foreclosure litigation. Once you file the bankruptcy, depending on what stage the mortgage collection activity is at, the lender may move to lift the automatic stay which is created by the bankruptcy, or wait until you receive a discharge, which ends the effect f the stay.

If you are in active foreclosure and file bankruptcy, the process of lifting the automatic stay may buy an additional 8 weeks or so.

Since you are not trying to save your house, it may not matter to you, but for anyone else reading this who may be trying to save a house, depending on the details, it may be possible through a Chaoter 13 bankruptcy proceeding to save the house.

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