How to File Bankruptcy to Stop Foreclosure

Video Transcript

"You have lost your job or suffered some other temporary setback that has prevented you from making your mortgage payments timely and your lender has now instituted a mortgage foreclosure proceeding against you and you don't know where you're going to go or how you're going to stop it but one of your neighbors suggested perhaps filing bankruptcy will stop the mortgage foreclosure proceeding. Hello, I'm Robert Todd and I'm here to answer the question how to file bankruptcy to stop mortgage foreclosure. Well first of all, there's nothing that's going to stop the mortgage foreclosure. You may be able to delay it but if you don't ultimately make the mortgage payments, you can't stop the foreclosure. Generally speaking, filing bankruptcy will result in the issuance of an automatic stay which means that the bankruptcy court stops the mortgage foreclosure proceedings but only on a temporary basis until the bankruptcy court can sort out your particular financial situation with respect to your assets and liabilities, your income versus your expenses. But ultimately, some sort of payment plan is going to be determined by the bankruptcy court and you either make that payment plan or you don't and if you don't make that payment plan, the mortgage foreclosure proceeding is ultimately going to continue. I'm Robert Todd and thank you for watching."