How can you receive foreclosure help by filing bankruptcy? Through  something called an “automatic stay.” An automatic stay is issued when  you file a Chapter 7 or Chapter 13 bankruptcy. The automatic stay gives  you protection against your creditors until the bankruptcy court has  time to consider everyone’s rights in the case. As long as the automatic  stay is in place, your creditors-including your mortgage lender-cannot  take action against you. During an automatic stay, you will be protected  from collection calls, repossession, and foreclosure.

The foreclosure help you receive from an automatic stay may be limited.  In a Chapter 7 bankruptcy case, the automatic stay expires when your  debts are discharged. This may only take a couple months, and then your  mortgage lender would be allowed to continue with the foreclosure of  your home.

However, with a Chapter 13 bankruptcy, the automatic stay remains in  effect for the life of your Chapter 13 repayment plan, which could be up  to 5 years. As long as you make payments as agreed in the Chapter 13  plan, you can stay in your home and avoid foreclosure. After you are  finished making the payments in your Chapter 13 bankruptcy plan, you  should be able to keep your home as long as you continue to make  mortgage payments.

One final note: do not seek foreclosure help from bankruptcy scam  operators. In the Tampa, FL area, you may have seen advertisements  targeting people who are having trouble paying their mortgages.  Sometimes calling themselves a “foreclosure service” or “mortgage  consultant,” these scams will ask you to pay your mortgage payments  directly to them. They may also ask for the deed to your home.  Meanwhile, the scam operator will file a bankruptcy in your name,  usually without your knowledge. During the brief time that the  fraudulent bankruptcy case stops foreclosure of your home, the  bankruptcy scam pockets your money and leaves. This means you could lose  your home and the money you paid to the scam, in addition to having a  bankruptcy on your record.

If you need foreclosure help in the Tampa, FL area, contact a Tampa  bankruptcy lawyer for assistance. Attorneys and Debt Counselors offers a  free initial consultation to anyone considering bankruptcy in the Tampa  Bay area, including homeowners who may use bankruptcy as a way to help  them avoid foreclosure.