How to File for Bankruptcy After a Foreclosure Is Granted

Filing for bankruptcy during a foreclosure process can help you avoid losing your home -- but you must file before the foreclosure has been completed, or granted. Once the foreclosure becomes official, the bank or lender owns the house, and a late bankruptcy filing won't reverse that. Legal website Nolo.com reports that a bankruptcy filing before the foreclosure could immediately stop the foreclosure proceedings, allowing you time to restructure your debt and possibly save your home with the help of the bankruptcy courts.

Instructions

1

Make an appointment with a bankruptcy attorney -- immediately. According to Nolo.com, laws regarding bankruptcy and foreclosure vary by the state. Your ability to avoid foreclosure through bankruptcy may be determined by when you file according to the laws in your state. Filing early in the process could offer you the most protection and postpone a court-ordered auction of your home for several months. But filing late could provide the lender with legal loopholes for continuing the bankruptcy through additional legal motions.

2

Tell the bankruptcy attorney that you are trying to save your house from foreclosure. Show the attorney copies of correspondence you have received from the lender or the courts, including any notice of a foreclosure lawsuit. Ask the attorney about the bankruptcy process and the legal fees.

3

See a second bankruptcy attorney. Consider even seeing two additional attorneys for additional opinions and advice. Initial consultations are often free. After the interviews hire one of the attorneys -- once you are convinced that filing for bankruptcy could prevent you from losing your home according to the laws in your state..

4

Take a mandatory pre-bankruptcy counseling session required by the bankruptcy courts. The Federal Trade Commission reports that people filing for bankruptcy are required to sit through a counseling session lasting about 90 minutes. During the session the counselor will discuss the pros and cons of bankruptcy as well as alternative to bankruptcy -- and foreclosure. The counseling sessions are available from government-certified credit counselors. Find a counselor near you by searching the U.S. Trustee database (see Resources).

5

File for bankruptcy after completing the counseling session and receiving a certificate of completion. Nolo.com reports that Chapter 13 bankruptcy is the most popular form of bankruptcy for avoiding foreclosure. The filing fee for Chapter 13 was $274 in 2010, with attorney fees additional. Once you file for bankruptcy the bankruptcy court will issue a court order, called an "automatic stay," preventing your lender from continuing with the foreclosure. After that, court hearings will be held to restructure your debt and allow you to keep your home.