Can filing bankruptcy in California help stop foreclosure?
Filing for bankruptcy in California may stop or delay your foreclosure. If you file for chapter 7 bankruptcy, otherwise known as a straight bankruptcy, your foreclosure may be delayed until your bankruptcy is finalized. Filing for bankruptcy triggers the automatic stay, essentially freezing your accounts and prohibiting your creditors from contacting you directly. However, your lender may still be able to file a motion to lift the stay. If your lender is successful, your foreclosure will still be delayed by at least a few months. In California, if you have already received notice of the foreclosure prior to filing for bankruptcy, the three-month notice period prior to the sale of a home will continue to run through your bankruptcy filing, and will not be affected by the automatic stay. If you have regular income that you can document for the court, consider filing for Chapter 13 bankruptcy. As part of a debtor filing for Chapter 13 bankruptcy, the court requires that the debtor submit
