Would Bankruptcy Protect Against A Foreclosure?

If your home is about to be foreclosed either by the bank or lenders, filing a bankruptcy is an option you can look into in order to delay or stop the foreclosure process, giving you time to set your finances in order or at the very least, negotiate with your lenders. So how do you go about filing for an emergency bankruptcy and save your home? The first thing that you need to do is to know when your foreclosure date is. Generally, the length of time a lender or a bank can foreclose on your house would depend a lot on your state’s laws. So if you have received a notice of foreclosure from your lenders, you need to read it carefully so you can determine when the foreclosure date is. Lenders are required to give borrowers sufficient notice that they have defaulted on payments and still wait a specific period of time before they can set a foreclosure date.

As soon as you have filed for bankruptcy, there takes an effect an automatic stay; preventing lenders to move forward with the process of foreclosing on your property. It is important to keep in mind however, that the automatic stay is only effective if the house has not yet been sold. If your house has been sold already, you are no longer the owner of the house and there is no point of filing for bankruptcy. If you do not have much time to spend filing for bankruptcy, you could choose to file for an emergency bankruptcy petition. When you file for an emergency bankruptcy petition, you are qualified for an automatic stay which would prevent lenders and bankers from foreclosing on your home.

So what is the difference between filing for bankruptcy and filing for an emergency bankruptcy petition? The only time you would file for an emergency bankruptcy petition is when you do not have time to complete and fill out all necessary forms for the bankruptcy so you would get more time to attend to all the documents and requirements for the bankruptcy. When it comes to filing for an emergency bankruptcy petition, you have to fill out basic forms and pay the appropriate court filing fees but there are certain courts that would require different types of forms so it is advisable that you check with local bankruptcy courts so you can determine what forms must be filled out and how much you should pay in court fees. Before you start to file for bankruptcy and stop the bankers and lenders from foreclosing of your home, you need to carefully go over all the information you have gathered carefully.