Will filing bankruptcy slow foreclosure proceedings?
Will filing bankruptcy slow foreclosure proceedings?
The short answer is: Yes, filing bankruptcy will stop a foreclosure. But there are some important caveats you need to know to make sure this strategy will work for you.
If you are behind on your mortgage payments, then starting the bankruptcy process will give you a stay of foreclosure proceedings. This means that creditors can't take action against the property until the bankruptcy is resolved.
But remember: filing a bankruptcy can be expensive, and you may not have enough money to pay for it if you're already struggling to pay your mortgage. It's best to talk with a lawyer before filing to discuss whether this is the best option for your situation.
If you're thinking about filing for bankruptcy, you might be wondering if that will stop your foreclosure proceedings. When it comes to home loans, it can get a bit complicated.
In general, when you file for bankruptcy, the lender cannot immediately foreclose on your property—the foreclosure will stop temporarily while your bankruptcy is pending. However, exceptions to this rule exist. One such exception is called a "super-priority" lien, which means the lender has first priority in line before any other creditors and can continue with the foreclosure even during the bankruptcy proceedings. If a lender has a super-priority lien on your property, they may be able to continue with the foreclosure while your bankruptcy is pending.
If you have any questions or in need a Bankruptcy Attorney, we have the Best Attorneys in Utah. Please call this law firm for free consultation.
Ascent Law LLC
8833 S Redwood Road Suite C
West Jordan UT 84088
(801) 676-5506
