Did you know that in many cases, filing for bankruptcy will automatically stay any foreclosure activity? In fact, filing for bankruptcy stays the collection of almost all debts, at least temporarily while the bankruptcy proceeding takes place. Filing an emergency bankruptcy in the eleventh hour is not necessarily the best way to stop a foreclosure, but it can be effective when necessary.
An emergency bankruptcy petition is simply one that is rushed through to the court to ensure it is filed before a foreclosure sale date occurs. Once the petition is filed, the sale date has to be postponed. This provides the homeowner time to either work out a bankruptcy or reinstate the mortgage with a lump sum payment of past due amounts plus attorney's fees.
Emergency filings are never optimal, because they leave more room for error or issues. If you are in danger of defaulting on your mortgage or are struggling to pay debts, then speaking to a bankruptcy attorney now rather than later can save you a lot of stress and even some money.
Our firm knows that life can happen quickly and you might find yourself in a foreclosure situation before you realize it, though. That's why we offer a number of solutions for dealing with debt and saving your mortgage. While we don't recommend emergency bankruptcy as the first choice, if you are facing eminent foreclosure, we do recommend working with someone with experience to file a bankruptcy petition. Doing it yourself is possible, but the bankruptcy process is extremely complex. If you make a mistake in your filing, you might not get another chance to save your home.