In the event that you will use bankruptcy to attempt to stop your foreclosure, you'll need to understand how bankruptcy can affect you. It can be a temporary fix or a permanent solution. It all depends on the type of bankruptcy that you file.
A chapter 7 bankruptcy will typically only delay foreclosure, not prevent it altogether. A chapter 7 bankruptcy will get rid of most of your debts. However since your mortgage is secured debt (the home could be the security), your lender can still foreclose on the home in order for that debt to be repaid. Chapter 7 bankruptcy can buy you some time but that's about all it could do. It will not keep you from having to move out.
Chapter 13 bankruptcy is the main one where you could keep your home. This kind of bankruptcy has got the best impact on your foreclosure procedures. It requires your lenders to utilize you on a repayment plan. As long as you stick to the plan, you are able to keep your home. In this type of bankruptcy, you'll want incoming coming in. You have to have the ability to repay your lenders so if you're unemployed this isn't likely to be an choice for you.
In either form of bankruptcy, the automatic stay will stop all collection activities from your mortgage company. During this period, none of your creditors can legally continue to attempt to collect on the debts you borrowed from them. This can, at a minimum, delay the foreclosure procedures by way of a few months.
Usually, filing for Chapter 7 bankruptcy won't stop foreclosure; it will just postpone it. Your obligations will be mostly discharged if you file for Chapter 7. But, since your mortgage is a secured obligation (your house can be the security), your lender is still able to foreclose on your house to collect the outstanding balance. Filing for Chapter 7 bankruptcy may buy you some time, but not much more. It won't prevent you from having to make a move. If you're navigating complex financial situations and need assistance in understanding bankruptcy laws or exploring possible solutions, you might consider seeking online class help from experts who can provide specialized guidance in this area.