Can Bankruptcy Stop Foreclosure?

I was just on the eviction thread, and I think that I was talking about my neighbor's home being foreclosed. My concern is the same, how possible is it for someone like me to face foreclosure?

Yes either Chapter 7 or Chapter 13 will stop a foreclosure--but you still have to cure your mortgage still.

But I think that if you can't afford to pay your mortgage payments, bankruptcy can't save your home. It has something to do with the new bankruptcy law, which is all about --whatever you do, you can't escape repayment. I'm not sure.

Mister Miyagi don't worry your neighbors knew beforehand that they are facing foreclosure. As soon as they've missed payments on their mortgage, they knew that there are going to be consequences. They probably have missed a couple of payments and did not hear much from their lender, except that they should make the payments current, but they were not able to fulfill those, and are now facing 4-5 missed payments. The lender then sent them a written notice (these notices differ from state to state) that they are indeed facing foreclosure.

So if that happens to me, and I file bankruptcy 7 or 13 (which one should it be?), my home is safe? For how long?

Chapter 7 can temporarily stop the foreclosure--which hopefully gives you enough time to either sell or refinance your home.

That is if you can afford to lose your home  and you just want to avoid it being foreclosed.

But if your intention is to really save it, you can file Chapter 13, and hope that it gives you time to cure your mortgage arrears.  In Chapter 13, since it is a repayment plan, you are going to have to be able to afford it. 

What if you couldn't afford it?

Unfortunately, as of the moment, Chapter 13 can't modify your mortgage payment yet, to make it more affordable for you.

There are rumors though that congress is working on changing bankruptcy law to allow mortgage modification. That should be a welcome change, if passed, as it can change time, interest rates, mode of payment, and perhaps even negotiate the balance.

To answer your question about time: the automatic stay can probably give you  3  to 6 months before your home is sold to foreclosure.

If you you have received a foreclosure notice from your lender 2-3 months before the foreclosure date, and that was your reason for filing bankruptcy, depending on your state law, the automatic stay will not be able to stop the notice's expiration date.

However, while your bankruptcy is pending, the sale itself can't proceed--unless the lender files for a motion to lift the stay, and the court grants it.

So you're saying that Chapter 7 can't save my home and if I can't afford the Chapter 13 repayment plan -- I am bound to lose my home.

Can I fight foreclosure I wonder...and if ever I lose my home to it,  am I likely to face with more problems or does it stop there?

Can I go to jail for not being able to afford repayment?

The automatic stay in Chapter 7 basically gives you relief from unsecured creditors--but since your lender is a secured creditor, Chapter 7 can't save your home from foreclosure.

Chapter  13 can only save you so long as you keep making payments under the plan until the debt is paid in full. Otherwise, Chapter 13 can't save your home from foreclosure too.

You can fight foreclosure if you have a valid claim against the lender, for example, he/she failed to properly credit your payments. If the court favors you on this claim, it would eliminate the basis for the foreclosure.

Some of the issues that might come up after the foreclosure are deficiency judgments (the lender comes after you because the sale falls short of the amount you owe) and tax liabilities (the income tax difference as a result of the deficiency).

As for imprisonment, that would entail a criminal case, I don't think that it should concern you at the moment. The bankruptcy court would find other ways to "assist" you with repayment.

"The initiative taken for the concern is very serious and needs an attention of everyone. This is the concern which exists in the society and needs to be eliminated from the society as soon as possible."

What is needed to be eliminated from society as soon as possible celina12?