Filing for Bankruptcy to Stop a Foreclosure on My Home

Get Legal Help Today

 Secured with SHA-256 Encryption

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by

UPDATED: Jul 16, 2021

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

Filing a Chapter 7 bankruptcy temporarily halts the lender’s right to foreclose on the borrower’s home. However, eventually the foreclosure usually proceeds and the borrower loses his house. Filing for bankruptcy should be considered only as a last resort.

Considering Filing for Bankruptcy

Schemes have been designed to entice a homeowner facing foreclosure to transfer a portion of the title to his home to a third person, who then files for bankruptcy. While this may temporarily delay the foreclosure, courts are becoming aware of the tactic and the delay may be very short-lived. Typically, the homeowner pays large fees and loses his home anyway. Some of the people engaging in such schemes have also been charged with fraud.

Filing Chapter 13

If bankruptcy seems to be an option, consider a Chapter 13 or “wage earner” repayment bankruptcy as an alternative to a Chapter 7 straight bankruptcy. Under a Chapter 13 plan, it is possible to make up the missed payments from your income through a repayment plan. This can be an effective way for you to keep your home. 

If you are facing foreclosure, bankruptcy may make sense depending on your other obligations and income sources. Consulting with a bankruptcy attorney may be very helpful in clarifying the best option for your financial situation. 

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption