Does filing chapter 7 Bankruptcy prevent a foreclosure?
Question:
Answer:
No! A Chapter 7 generally discharges all assets. For those seeking to ward off a foreclosure proceeding, they are better-served by choosing a Chapter 13, which includes payment options.
It delays it, at best, unless you reaffirm the debt and bring the loan current. If you do not, the lender will file a motion for "relief from stay" and, once obtained, may begin foreclosure.
In a Chapter 13 (a form of repayment program) the Bankruptcy Trustee works with you and your creditors to establish a repayment program that will either pay in full or bring current secured creditors (house, cars, etc) and will repay a percentage of your unsecured debt (credit cards, personal loans, etc).
If you default on the plan payments, your mortgage lender may request relief from the stay of bankruptcy and proceed to foreclose the house.
With a Chapter 7 or 13 - you will need to re-afirm your home.But if you have equity in your home, than there is a possibility you could loos your home. Talk with your attorney - ok - there is information on the www - so check that out also.Or Fee Legal Aid to get advise. Since the Bk laws changed it is harder to do a Ch 7 - most are going with ch 13 - that will save your home - Are you already behine in your home.Do you have equity in your home, to pay off some debit - Would rather see you do that, than loose your home...Good luck.
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