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On Behalf of | Feb 5, 2018 | Bankruptcy

The threat of foreclosure can be devastating. What happens now? What will we do if we lose our home? Where else can we live? What can we do to save our home? These questions may seem daunting at first, but if your financial situation is dire, bankruptcy may be your best and most effective option. It may seem like a difficult or dangerous choice at first glance, but if you file a Chapter 13, you can actually save your home and rectify your financial troubles in one fell swoop.


As several steps must be taken before it actually goes into effect, foreclosure is not a quick process. In order for a lender to foreclose in the first place, the resident must miss a number of payments in a row. Then, a notice must be sent to the resident at least one month before the home goes into auction. This means that you will have a window of opportunity that can last up to four months, but no shorter than one month. The time between the notice and the auction is the one in which residents must act; a Chapter 13 bankruptcy can be filed during this period, and it will generally halt the foreclosure process in its tracks.

Automatic Stay: How This Works in Utah

Regardless of the type of bankruptcy you choose to file, once you do, you are granted an “automatic stay.” This stops creditors from pursuing you, halts foreclosure, prevents garnishment of your wages, and ensures that you are no longer penalized for most of what you owe. While Chapter 7 comes with certain risks in terms of assets, Chapter 13 does not; if you choose to file, keeping your home is almost a guarantee. As long as you act quickly, your attorney can help you avoid losing the roof over your head.

After Filing Your Utah Bankruptcy

The act of filing may save your home, but you must keep up on your smaller, more manageable monthly payments. This should not be difficult, as payments in a Chapter 13 bankruptcy are calculated based on your amount of disposable income; however, if you are unable to make any payments due to a lack of income or unstable income sources, Chapter 7 may still be an option. You can ask your affordable bankruptcy attorney whether or not Chapter 13 is right for you, and what you can do to ensure that you save your home and your family from foreclosure.