Affordable Bankruptcy Law Firm
Filing a Chapter 7 or a Chapter 13 bankruptcy will both temporarily suspend any action by your lender regarding the foreclosure on your home. When you file for bankruptcy relief, you are protected by the Automatic Stay provisions of the U.S. Bankruptcy Code which prevents certain creditors from pursuing collection activity. A foreclosure is a collection activity. Therefore, your bank will not be able to move forward with the foreclosure until the Automatic Stay has expired or the creditor has obtained relief from the Automatic Stay through the Bankruptcy Court.