Can bankruptcy protect my home from foreclosure?

One important advantage of bankruptcy is that it can protect your home from foreclosure. If you are behind on your mortgage, your lender may try to recover as much money as possible by foreclosing on the property and then selling it. However, when you file for Chapter 7 or Chapter 13 bankruptcy, the bankruptcy court issues an automatic stay on all debt collection efforts, postponing or even preventing foreclosure sales.

If you are a homeowner and are facing significant financial struggles, it is important to understand how bankruptcy can help you. For more information about your legal options, contact the Cedar Rapids bankruptcy lawyers of Hong Law, PLC, at (319) 294-5853.