Bankruptcy Stops Foreclosure!
As a Board Certified Consumer Bankruptcy Attorney, I see Bankruptcy clients all week long. This week, I saw a potential client who was convinced that her foreclosure was going to continue if she filed for bankruptcy protection. Since she had never filed for bankruptcy protection before, there is no limitation on the automatic stay provisions. The automatic stay is an injunction that goes into place immediately to prevent a creditor from taking any action to collect on a debt. That includes continuing the foreclosure process.
Of course, there are limitations on the automatic stay provisions of the Bankruptcy Code, and in 2005, it seemed that Congress attempted to gut the provision entirely, but it is still there protecting debtors and creditors alike.
When I asked her where she received this information, she told me it came from the internet. I gritted my teeth and told her she had been misinformed. After telling her about the good places on the internet where she can receive good information about bankruptcy, credit reporting, debt collection and mortgage foreclosure, she was happy.
This blog was posted by Carmen Dellutri, Esq. Mr. Dellutri is the founder of The Dellutri Law Group, P.A. He also serves on the Board of Directors for the American Board of Certification.
