Some people, when faced with the choice between foreclosure and bankruptcy, are not sure which is the right one to choose. Few people realize how difficult the choice is to make, or recognize that the decision is not an either/or one.

Paying the lender is the only true way this action can be prevented. A mortgage loan is sort of like a car loan and if a person does not pay his car payment, he will lose the car through repossession. In a similar vein, if a person is lax in their monthly mortgage payments, they will experience losing their home via foreclosure.

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.

Occasionally, however, foreclosure is prevented through bankruptcy, as the latter gives person additional time in which to pay the lender and usually makes the paying easier. As bankruptcy makes a mortgage lender temporarily cease a foreclosure action, a debtor has additional time to raise money to pay the lender. The debtor may also have have several of their other debts eliminated due to bankruptcy, so they are able to have additional money available to pay their mortgage. In terms of a chapter 13 bankruptcy, the courts will dictate that the payment of the overdue mortgage needs to be paid through several payments, which will further give the debtor time to pay the lender off.

Of course, there is a good chance that a debtor might not actually be able to file for bankruptcy, as eligibility is an issue, and even if they do qualify, there are legal fees that need to be paid. For some, they may find that the exorbitant fees they are asked to pay are even higher than the payments they were behind on. Anyone considering bankruptcy to prevent foreclosure should discuss it with a lawyer. Bankruptcy is a complicated legal process that should not be handled by yourself alone. The scope of this article is to give you basic information, and if you are wanting more detailed information, you need to speak to a lawyer who is actually licensed in your home region.