Does filing for bankruptcy help with my foreclosure?

Yes. When you file for bankruptcy, the court imposes a “stay” on all collection efforts by your creditors. This stay includes the bank that holds the mortgage on your home.

Creditors must cease efforts to collect mortgage payments. They may not file for foreclosure or continue to pursue a foreclosure action while the bankruptcy stay is in place. With the right bankruptcy filing, you can completely stop the foreclosure by restructuring your debts and getting current on your mortgage payments.