How to Stop or Prevent a Foreclosure by Filing for Bankruptcy

Filing for bankruptcy before your house is sold at a sheriff's sale may help you stop or prevent the foreclosure of your home. If you want to prevent a foreclosure by filing for bankruptcy in Michigan, you should contact a Michigan bankruptcy attorney as soon as possible.

Foreclosure and Bankruptcy: Automatic Stay to Temporarily Stop Foreclosure

When you file for a Chapter 13 bankruptcy or file for a Chapter 7 bankruptcy, the court automatically issues an Order for Relief that has a provision for an "automatic stay." The automatic stay prevents creditors listed in your bankruptcy petition from collecting on their debts.

Chapter 13 Bankruptcy to Prevent Foreclosure

Chapter 13 bankruptcy is designed to consolidate bills and repay creditors. Your Chapter 13 bankruptcy petition must be filed before a sheriff's sale, or you will not be able to reinstate your mortgage. If you file before a sheriff's sale, you may be able to cure your mortgage arrearages over a period of years under a repayment plan.

Detroit bankruptcy attorney John Steinberger is a Board Certified Bankruptcy attorney in Michigan with over 25 years in legal practice. He and his team of Detroit bankruptcy attorneys have represented thousands of individuals and families in Michigan bankruptcies.

If you'd like to contact our office to speak with a Detroit, Michigan bankruptcy attorney, please call us at 1-866-690-2140, e-mail bankruptcy attorney John Steinberger or complete the form on our contact us page.