Can Bankruptcy Stop a Foreclosure in Kentucky?

If a foreclosure sale is bearing down on your home, here is the short answer: yes, filing for bankruptcy can stop a foreclosure in Kentucky. The moment a bankruptcy petition is filed, a federal law called the automatic stay (11 U.S.C. § 362) freezes most collection activity against you, including a scheduled foreclosure sale.

How the automatic stay stops the sale

The stay takes effect instantly, before any hearing. A foreclosure sale held in violation of the stay is generally void. But timing matters: the petition must be filed before the sale takes place, so a sale date should be treated as a countdown.

How Chapter 13 helps you keep the home

Stopping the sale is step one. A Chapter 13 plan then lets you cure the missed mortgage payments over three to five years (11 U.S.C. § 1322) while you keep making the regular monthly payment. For homeowners with steady income, it is the law's purpose-built tool for saving a home.

Read the full article, with citations to the Bankruptcy Code, on this page.

By Dalton Stanley · About the author · More from the blog

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Dalton Stanley is the attorney responsible for the content of this website. Principal office located at 156 Ky Oil Village, Betsy Layne, KY 41605. The information provided on this website is for general educational and informational purposes only and does not constitute formal legal advice. Viewing this website or submitting a contact form does not create an attorney-client relationship. Licensed to practice law in the Commonwealth of Kentucky. THIS IS ADVERTISING MATERIAL. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.