Bankruptcy is a scary procedure to undergo, and some wonder if they should simply allow a mortgage foreclosure to take place instead. Few people realize how difficult the choice is to make, or recognize that the decision is not an either/or one. An act of foreclosure can occur when the mortgage lender does not receive the monthly payments they are entitled to.

The only way to stop this is to pay the mortgage lender. Most people realize how important it is to make your car payments on time every month, if you do not want to have your car repossessed. Similarly, an individual may lose their home through foreclosure if they do not keep up with the monthly payments on their mortgage.

If a person's debt is so bad that they cannot pay their debts, then they sometimes must file bankruptcy. This action stops all civil proceedings against the debtor while the debtor is in bankruptcy. As a result, the mortgage lender is incapable of immediately continuing their foreclosure, or any other legal action.

However, a mortgage lender can file for relief from the automatic stay, and when the relief is granted, simply proceed with the aforementioned action. The bottom line is that bankruptcy does not stop foreclosure and it does not allow a debtor to keep a house without paying the mortgage lender. While it cannot stop the action, bankruptcy can slow it down.

While bankruptcy doesn't stop foreclosure, it can give a person extra time to pay the lender, or make it easier to do so. Mortgage lenders are required to stop their foreclosure due to bankruptcy, and this gives the person owing money additional time to raise money to pay the lender. Through bankruptcy, many unsecured debts are eliminated completely, and a person who is in debt will frequently find that they have money to pay their mortgage payments with that they didn't before bankruptcy. Also, a chapter 13 bankruptcy is a court ordered payment plan and allows a debtor to pay the mortgage catch up amount over a period of time.

In order to file for bankruptcy, you must first qualify - which not everyone does - and even if you do, you will be faced with large legal fees. Legal bills can be quite high, and high enough that they outweigh the costs of catching up with the mortgage. If you think that bankruptcy may help you stop or avoid foreclosure, talk with a licensed lawyer. No one should attempt a complicated legal process like bankruptcy without legal aide. This article is only intended to give general information, so for more detailed information, contact a lawyer in your state.