Q

Will a chapter 7 bankruptcy stop a foreclosure or repossession?

A

Yes. However, a chapter 7 bankruptcy case will never permanently stop a creditor from foreclosing or repossessing their collateral. A secured lender, shortly after learning of the chapter 7 bankruptcy case, will likely file a motion with the Bankruptcy Court for permission to continue the foreclosure proceedings or repossession (a motion for relief from the automatic stay). If you wish to permanently retain the collateral you will need to make arrangements with the secured lender. This can sometimes be accomplished through a reaffirmation agreement.