I heard a Chapter 7 bankruptcy would not stop home foreclosure or auto repossession?
A. Lets get very specific on this. The filing of a Chapter 7 will, indeed, stop foreclosure or auto repossession upon submission to the court. The critical part comes next. After a relatively short period of time, unless you have an agreement with the creditor, or in cases where you may be current with a particular obligation, the creditor will file for relief from the automatic stay. For most Chapter 7 debtors no defense exists, the court grants relief to the creditor, and the foreclosure or repossession continues. So while a Chapter 7 does stop foreclosure and repossession, it does not stop them for the long term in the absence of an additional agreement with the creditor or in some cases where the loan remains current.
