Whether you are debating between a Debt settlement and bankruptcy filing or have decided to file bankruptcy but are worried about the effects it might have on your credit, you are bound to have many questions.
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Yes. When you file bankruptcy, a federal injunction known as “automatic stay” goes into effect
immediately which stays all collection attempts from the creditors, including a foreclosure.
But in many cases, the relief is only temporary, unless you address the underlying issue: i.e., you
reinstate the loan by curing the default or doing a loan modification.
A chapter 13 bankruptcy allows you to catch up on delinquent mortgage payments over a three-to
five-year period, paying out the delinquent amount in small additional payments. You must also make all your mortgage payments that come due after the filing of your bankruptcy case.
The information contained on this site is for general education only and it is not, nor is it meant to be, legal advice. You should seek advice from a bankruptcy attorney for your specific situation.