Yes, bankruptcy will stop foreclosure. Of all the methods people pitch, bankruptcy is the only one that is guaranteed to work. The reason bankruptcy is so effective in stopping a foreclosure is because of the "Automatic Stay," which says that all collection activity on all of your debts is automatically stopped (or "stayed") the minute ...
Category Archives: Automatic Stay
Automatic Stay Created When Filing Bankruptcy
The automatic stay is one of the most important aspects of the bankruptcy law. Once a petition for bankruptcy is filed by a debtor, the automatic stay is immediately in place. This means all collection activity must stop, and a creditor may be punished for ANY collection activity that occurs, even if they did ...