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Will filing Bankruptcy stop a foreclosure or eviction?

  • By: John Clark
  • Published: August 12, 2020

Yes. When you file your bankruptcy “petition,” all foreclosure or eviction proceedings are immediately stopped. At the moment you file a petition seeking bankruptcy relief, the Bankruptcy Code imposes an injunction on all of your creditors called the “automatic stay.” The automatic stay prohibits your creditors, including a mortgage lender or landlord, from any collection activities, including foreclosure or eviction. Typically, once you initiate bankruptcy, your lender or landlord may only proceed with foreclosure or eviction after requesting permission of the Bankruptcy Court and proving to the Court that you did not comply with the requirements of the Bankruptcy Code as it relates to your mortgage or lease.

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