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Filing for bankruptcy can stop a foreclosure

On Behalf of | May 9, 2024 | Bankruptcy Law |

In Mississippi and throughout the country, many households have been hit with financial problems in recent years. Some people have lost their jobs, while others have suffered health issues prompting a need for expensive medical care. Many people have incurred high balances on their credit cards, just trying to make ends meet. Some are behind on mortgage payments and fearful that their lenders will initiate foreclosure proceedings.

Especially for households that include children, receiving a foreclosure notice in the mail is a frightening experience. Parents immediately begin to worry about where their family will live and what type of impact the situation will have on their financial future. If you’re in a similar situation, the good news is that you can file an emergency bankruptcy petition to halt all proceedings against you.

How does bankruptcy stop a foreclosure?

When you file an emergency bankruptcy petition, it activates an automatic stay against legal proceedings and debt collections. This stay includes things like wage garnishments, repossessions, contact from collection agents and foreclosure. No one can initiate a legal proceeding against you until the bankruptcy is processed.

Timing is important regarding filing an emergency bankruptcy petition. It is helpful to seek counsel from someone knowledgeable about Mississippi bankruptcy and foreclosure laws, as well as experienced in helping people navigate the system. By scheduling a consultation with Walsh Law Firm, PLLC, you can start down the path from financial chaos to peace as you explore options for resolving debt and laying the groundwork for a stronger financial future.