Foreclosure proceedings: Can you file bankruptcy during this period

Foreclosure proceedings: Can you file bankruptcy during this period?
Did you receive a letter from the creditors of foreclosure proceeding? If yes, then you can avoid losing your home if you file bankruptcy before the foreclosure is granted. Once the property is repossessed by the creditors, it may not be beneficial to file bankruptcy. Therefore, file bankruptcy to put an end to the foreclosure proceedings. It can provide you more time to rearrange the debt and manage to protect your home with the help of the bankruptcy lawyers. You can find more information whether you can file bankruptcy during foreclosure process from the any consumer law blog.
Here are a few tips to file bankruptcy during the foreclosure process:
1. Consult a bankruptcy lawyer: You need to consult with your bankruptcy attorney immediately when you contemplate filing bankruptcy. Remember, the law on bankruptcy and foreclosure may vary from state to state. Therefore, your state law may play an important role, to determine whether you’re capable of averting foreclosure through bankruptcy. If you file bankruptcy during the foreclosure proceeding, you can delay the legal process of auction. Well, if you file late, it may give opportunity to the lender to find loopholes with additional legal motions.
2. Show interest to protect your home: You need to inform the bankruptcy attorney that you’re interested to save your home from foreclosure proceedings. Try to provide the legal documents to your attorney that you receive from the court or lenders.
3. Pre-bankruptcy counseling required: You’re required to take up pre-bankruptcy counseling session. You need to provide documents of the counseling session while filing petition with the court. The counseling sessions may guide you to provide detailed information on bankruptcy process. You can also learn about money management techniques through the counseling session. Make sure you work with the government certified counselors, when you file petition with bankruptcy court.
4. Get completion certificate from the counseling agency: Make sure you complete the counseling session before filing for bankruptcy from a certified counseling agency. Generally, consumers file under Chapter 13 bankruptcy to avoid foreclosure proceedings. When you declare bankruptcy, the court may place ” automatic stay.” It may prevent the creditors from collection attempts, so you can avoid losing your home in the foreclosure proceeding.
Therefore, you need to file bankruptcy before the completion of the foreclosure process. You can avoid losing your property if you file bankruptcy at the right time.