Filing Bankruptcy Before the Foreclosure Sale
If you file for bankruptcy before the foreclosure sale of your home, you’ll receive what is called the automatic stay. For the most part, an automatic stay offers you protection from foreclosure. It means you can stay in the house. It also means your creditors cannot come after you for money until your case is discharged. Your lender has the option of trying to have the automatic stay lifted, but this process typically takes 2 to 3 months. So even if your lender has the stay lifted, most bankruptcy cases are done within 90 days of filing, which means you could be discharged before the sale.