How can filing Bankruptcy prevent a foreclosure sale?
When a Bankruptcy is filed, the federal Bankruptcy court issues an order which stops the foreclosure process by preventing the transfer of property and any efforts to collect debt. This Order remains in effect until the Lender either persuades the Bankruptcy Court to remove the Order or until your Bankruptcy case closes. In a Chapter 13, you and your attorney offer a Plan that describes how you will pay off the overdue amount. A Chapter 13 Plan can be customized to work with your unique circumstances, so each one is different. However, the Plan must satisfy all of the requirements of the Bankruptcy laws, as well as local rules of practice. The law lets you to take up to five years to pay off the delinquent amount owed on your mortgage. You must make your ongoing payment each month and you must make a payment each month on the past due balance. Loopholes in the Bankruptcy law can stop interest and late fees from continuing to be charged on the delinquent amounts. You may also be able to
