If your lenders or banks are about to start the process of foreclosing on your property, filing a bankruptcy can help delay or stop the foreclosure process allowing you to have more time to negotiate with the bank or your lenders. So what can you do to file for bankruptcy and delay the process of foreclosure? The first thing that you need to do is to know when your foreclosure date is. Generally, the length of time a lender or a bank can foreclose on your house would depend a lot on your state’s laws. So if you have received a notice of foreclosure from your lenders, you need to read it carefully so you can determine when the foreclosure date is. Lenders are required by law to give you sufficient notice of your default payments and wait a specific period of time before it can set a foreclosure date.
The moment you file for bankruptcy, an automatic stay would take effect, preventing lenders or bankers from moving forward with foreclosing on your home. Do remember that this automatic stay is only in effect if your house has not yet been sold. If your house has already been sold, you are not the owner of the house and filing for bankruptcy is not going to do you any good. However, if you do not have time to file for a bankruptcy, you can choose to file for an emergency bankruptcy petition. Filing for emergency bankruptcy petitions qualifies you for an automatic stay so lenders would not foreclose on your home.
So what is the difference between filing for bankruptcy and filing for an emergency bankruptcy petition? You file for an emergency bankruptcy petition when you do not have time to spare filling out all the forms and completing all the documents needed to file for bankruptcy, this gives you more time to complete the required paperwork and get the bankruptcy filing attended to right away. For you to file an emergency bankruptcy petition, you should complete the basic forms and pay appropriate court fees although there are certain courts that would require different types of forms so it is best that you check with your local bankruptcy court to get an idea what forms to fill out and how much the court filing fees would be. You need to study all the information you have gathered carefully prior to you starting to file for bankruptcy and stop your home from being foreclosed.