The last two years have brought about a lot of economic hardship. You may find yourself facing some serious financial problems that you never anticipated. You may even be facing foreclosure on your house. If you live in Connecticut, this can happen if you’ve missed four payments or more on your mortgage.
Stopping foreclosure is difficult, especially since it usually means your entire financial situation is in disarray. You may be wondering if filing bankruptcy can stop foreclosure? The short answer is “yes.”
What is an automatic stay?
Once you file bankruptcy, the law says that you can not be pursued by creditors during the process. This is known as an automatic stay, and it will immediately stop the foreclosure. This may not be a permanent solution to your financial problems, but it will buy you some time to get your ducks in a row.
What if my creditors keep pursuing me?
Once you file bankruptcy, all attempts to collect your debts are frozen. Sometimes, a creditor may keep calling because they are unaware that you’ve filed bankruptcy. If you make them aware of the situation and they still continue to pursue you, they may be fined by the court.
What type of bankruptcy is best for me?
When you file Chapter 7 bankruptcy, the court will freeze foreclosure proceedings. This gives you time to move out. If you want to fight to keep your home, filing Chapter 13 is the best way to go. The automatic stay will buy you some time to gather up enough funds to pay your past-due mortgage balance.
Filing for bankruptcy can be very stressful. That’s why it is crucial that you seek out experienced legal guidance to help you through the process.