Facing a sheriff sale can be overwhelming and emotionally draining. When you’re days or weeks away from losing your home, it may feel like you’re out of options. However, filing for bankruptcy can offer immediate protection and a chance to regain control of your financial situation. Understanding how this process works can help you decide whether it’s the right step for you.
When you file for bankruptcy, either Chapter 7 or Chapter 13, the court issues something called an automatic stay. This stay is a powerful legal tool that instantly stops most collection activities, including foreclosure actions and scheduled sheriff sales. Once the automatic stay is in place, your mortgage lender cannot proceed with the sale unless it obtains special permission from the court. For many homeowners, this pause provides crucial breathing room.
Chapter 13 bankruptcy is often the preferred option for stopping a sheriff sale because it allows you to propose a repayment plan and catch up on missed mortgage payments over time. As long as you stay current on your plan and ongoing mortgage payments, you can remain in your home and work toward long-term stability.
Chapter 7 bankruptcy, while not designed to help you catch up on arrears, may also temporarily halt the sale through the automatic stay. This can provide a short window of relief, giving you time to explore alternatives like loan modifications or preparing to move in a more controlled manner.
CALL NOW FOR A FREE STRATEGY SESSION FROM AN MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
Filing a bankruptcy can be a powerful tool for homeowners who need immediate protection from foreclosure. If you’re facing a sheriff sale, acting quickly is essential. Bankruptcy may be scary, but the right law firm can make this process straightforward and painless! If you need relief from your creditors, reach out to Minnesota’s kindest and most helpful bankruptcy law firm at www.lifebacklaw.com.
