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Can a Bankruptcy Stop a Foreclosure?

April 13, 2021

One of the most stressful parts of being in a dire financial situation is that a person in debt may fear they will lose their home due to a foreclosure. Though many people are wary about filing for bankruptcy, what they may not realize is that filing for bankruptcy can actually put a stop to a foreclosure as soon as bankruptcy is filed.

Filing bankruptcy will implement an automatic stay, which means that mortgage lenders and any other creditors you have debts with are no longer allowed to contact you at all. This means no more phone calls, emails, letters in the mail, or repossessions, which is a serious weight off of one’s shoulders. Now, you can work with an experienced bankruptcy attorney to focus on figuring out a way to save your home and possibly even discharge some of your other debts.

Depending on which type of bankruptcy you file, you may be able to restructure some of your debts, which gives you a chance to make smaller payments over a longer period of time. If you have questions about how you can save your home and stop a foreclosure, as well as rid yourself of other debts, contact an experienced bankruptcy attorney today.

Juan C. Velasco, Esq. is a trusted attorney who concentrates on bankruptcy, family law, real estate, and estate matters who has been serving the New Jersey area for over 25 years. If you are in need of experienced legal counsel, please contact Velasco Law Office and we will be happy to assist you.