Does Chapter 7 stop foreclosure?
A Chapter 7 case will only temporarily stop a foreclosure process. What bankruptcy will do for you in this situation is to ensure that there will be no adverse tax or deficiency issues following the foreclosure. There is no sugar-coating this situation, your credit rating will take a huge hit because of the missed house payments and foreclosure. What you CAN DO to make the best of this situation is to fold all of your other credit card debts, medical bills, and other miscellaneous debt into the bankruptcy so that you can focus on the bills that are absolutely essential – housing, transportation, food and health care. Your fresh start will free you from worries about losing the house and all the crushing debt that was dragging you down.
