Beyond the pandemic's foreclosure moratorium, Chapter 7 bankruptcy gives you serious advantages if you're selling your home.
Bankruptcy can prevent future judgment liens. It usually stops a lawsuit from turning into a judgment, and then a judgment lien on your home.
Bankruptcy can, in the right circumstances, remove a judgment lien from the title to your home. Here are the conditions for pulling this off.
A creditor might want to pay a claim through your insurance, or finish a lawsuit to establish that you got the debt through fraud.