Bankruptcy Automatic Stay and Foreclosures

Once a bankruptcy is filed the automatic stay takes effect. This means that if you can file your bankruptcy before a sheriffs sale you can protect your home for another few months. If you have filed for bankruptcy and the sheriffs sale takes place, that sale is void, and needs to be redone. The creditor must first move to have the automatic stay lifted in the bankruptcy action. In most cases this is granted because payments are not being made on the home. It is possible to dispute the automatic stay being lifted, but in most cases this will not get you much extra time, since the automatic stay expires automatically.