How Can Bankruptcy Stop Foreclosure?

If you are having trouble keeping up with your mortgage, then you are in a group with a growing number of people in this country. More and more families are finding themselves on the brink of being homeless because they have been caught unawares in mortgages that are now higher than the value of their homes. When this happens to you, you may think that bankruptcy is a great option for you, but can bankruptcy stop foreclosure?

Bankruptcy is really something that you want to avoid doing at all costs. No matter how deep you are in debt, when you file for bankruptcy, you have a series of new problems following you for up to another ten years.  But, can bankruptcy stop foreclosure? Yes, it can, but don’t think that you are going to save your home.

Depending on the type of bankruptcy that you file for, you might be able to completely write off all of your debt, but not your mortgage. In some cases, you can exempt the mortgage from the bankruptcy, and pay it off as scheduled, but if you are looking to have your cake and eat it, too, it is not going to happen. Bankruptcy is not a way to write off the debt on your home.

There are other ways to deal with a pending foreclosure, not least of which is dealing with the lenders. There are companies that can help you do that, help you renegotiate the loan, or even find a better loan with another company. But if you are wondering can bankruptcy stop foreclosure, you will find that you should be looking for a better option.