Yes, in most cases, filing for bankruptcy can immediately halt foreclosure proceedings. This is due to the automatic stay, a court order that temporarily stops all collection actions, including foreclosure. However, there are a few exceptions:
- Multiple Filings: If you’ve filed for bankruptcy multiple times within the past year, the automatic stay may not be automatic and might require court approval.
- Reaffirmation Agreement: If you reaffirm your mortgage debt in bankruptcy, you agree to continue making payments and the lender can resume foreclosure if you default again.
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