Upon filing for Chapter 7 Bankruptcy Attorney in Columbus OH, you gain immediate protection from the "automatic stay" provision. This rule requires that all creditors cease collections activity until the case is completed. This protection includes your mortgage company.
The "automatic stay" can delay a pending foreclosure. However, it will not automatically stop foreclosure completely. In fact, your lender can petition the court to proceed with a foreclosure even with the bankruptcy proceedings underway. It's difficult to know what the outcome of that request might be. Still, Chapter 7 Bankruptcy Attorney Columbus OH will typically provide you around 60 days of protection during which you can be taking other actions to stop the foreclosure, including selling your home and negotiating with your lender. This time can be extremely helpful in resolving the issue positively.
Oftentimes, a person filing for Chapter 7 Bankruptcy Attorney Columbus OH does not have any assets to be named. Once the trustee has determined what assets can be liquidated, said assets are sold, and the money is used to help pay back creditors
Chapter 13 is the other type of bankruptcy. It differs from Chapter 7 in that it requires you to pay at least some of your outstanding debt. If your main goal is avoiding foreclosure, Chapter 13 can be a good choice.
The best way to evaluate how Chapter 7 or Chapter 13 bankruptcy can help you is to speak with an expert. Chapter 7 Bankruptcy Attorney in Columbus OH can evaluate your income, debts, and situation and recommend a plan of action that can eliminate the debt that keeps you from moving forward.