I just wanted to know the difference between foreclosure and bankruptcy. My boyfriend is filing bankruptcy chapter 13 but his house is being foreclosed on in December.

Bankruptcy is a legal action by a debtor to get out from under debt that is legitimately owed to creditors.

If his declaration of Bankruptcy is filed fast enough, he may be able to hold off on the foreclosure for about another year, without making payments on the house. That would be at the Bankruptcy Judge's discretion. Once your attorney has filed for Bankruptcy protection for you, no more creditors should be calling you. If they inadvertently do call, do not speak to them. Give them your attorney's name and number.

Foreclosure, is a legal action taken by a creditor against a debtor to reclaim the property that was used by a person as security for a loan. In this case the house.

I just wanted to know the difference between foreclosure and bankruptcy. my boyfriend is filing bankruptcy chapter 13 but his house is being foreclosed on in december.


Chapter 13 is wage earner's bankruptcy - he will pay off his debts at a reduced rate over a period of years with the Judge's approval of the plan.

An individual files his own bankruptcy - this is filed by the person owing the money.

Foreclosure is an action to take property back for failing to live up to the contract/mortgage - this is filed by the person lending the money.

There are new rules concerning bankruptcy petitions and your boyfriend's Attorney should begin the filing procedure immediately if he is going to attempt to pull this property out of foreclosure.

From Chapter 13 bankruptcy basics: "Individuals may use a chapter 13 proceeding to save their home from foreclosure. The automatic stay stops the foreclosure proceeding as soon as the individual files the chapter 13 petition. The individual may then bring the past-due payments current over a reasonable period of time. Nevertheless, the debtor may still lose the home if the mortgage company completes the foreclosure sale under state law before the debtor files the petition.11 U.S.C. § 1322(c). The debtor may also lose the home if he or she fails to make the regular mortgage payments that come due after the chapter 13 filing. "