Using The Law To Make Your Life Better

What role does bankruptcy have in a foreclosure proceeding?

David Sexton

Although the national economy is lightyears better now than it was 10 years ago, there are still millions of Americans who are struggling financially, especially when it comes to debt. In fact, some people right here in Tennessee may currently be involved in a foreclosure proceeding, with their home in jeopardy. However, even for those who find themselves in these dire financial situations, there may be options, including filing for bankruptcy.

What role does bankruptcy have in a foreclosure proceeding in Tennessee? Well, as a recent article noted, there is one crucial part of a bankruptcy filing that may have an impact on such a proceeding: the "automatic stay." Our readers who are familiar with previous posts here may be familiar with this part of a bankruptcy filing, which is essentially a court order that all debt collection efforts against the filer are to "pause" in the immediate aftermath of a bankruptcy filing. As a result, a whole foreclosure proceeding can be "stayed" by a bankruptcy filing, at least for a brief time.

Will a bankruptcy filing allow Tennessee residents to keep their home from being foreclosed on? Perhaps, but perhaps not. Each person who files for bankruptcy needs to analyze the long-term financial impact of attempting to keep the home, as opposed to letting the foreclosure and bankruptcy processes proceed and allow the filer to be debt free to the greatest extent possible in the aftermath of the legal cases.

Bankruptcy can be a useful financial tool for many people in Tennessee. However, each person's financial situation is different, which is why our readers may want to get more information about their own unique circumstances and options.

No Comments

Leave a comment
Comment Information

Don't delay any longer.

When you need qualified, experienced legal counsel from a legal leader with over 25 years' experience, you need The Sexton Law Firm.

Let Us Help You

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Visit / Follow Us

Knoxville
9145 Cross Park Drive
#103
Knoxville, TN 37923

Phone: 865-297-5242
Fax: 888-600-6919
Knoxville Law Office Map

Mount Juliet
1550 North Mt. Juliet Rd.
Suite 105
Mount Juliet, TN 37122

Map & Directions

Bristol
511 Alabama Street
Bristol, TN 37620

Map & Directions

Sevierville
500 Park Rd.
Sevierville, TN 37862

Map & Directions