There are no guarantees when it comes to the outcome of filing for bankruptcy. The bankruptcy process can yield different results from one Florida family to the next. For those who are concerned with how to stop home foreclosure by filing for bankruptcy, it is imperative to understand how the different types of bankruptcy and the exact nature of the situation will impact the ability to keep a home.
Filing for bankruptcy will stop a foreclosure against a home. But that doesn’t mean a home is permanently safe from foreclosure. Payments still need to be caught up somehow. If a homeowner is severely behind in mortgage payments, filing Chapter 13 bankruptcy can give a homeowner possibly five years to catch up payments and keep the home at the same time, if the homeowner is able to present a debt reorganization plan that the court approves.
After filing for bankruptcy, it is important to stay on top of action by the lender. Automatically deducted payments from a checking account may stop. If you do not make other arrangements to pay, such as by using money orders, the lender can still go through with the foreclosure process.
There is too much at stake for a homeowner to not understand how filing for bankruptcy will impact an attempt to stop home foreclosure. The more information a Florida homeowner has before he or she files, the better the possibility that the right outcome will occur, such as keeping a home safe from foreclosure. Our firm has more information online about what will immediately occur in relation to home foreclosure once bankruptcy is filed.