Find the best financial services for you at: SMARTFINANCESOLUTIONS.NET - Should I file bankruptcy before the foreclosure or after? - When is a good time to file for Bankruptcy? before or after foreclosure? br I received a letter in the mail from an attorney. My lender wants to start the foreclosure proceedings. At the moment, I am 8 months behind on my mortgage. I want to dump the house as I owe 20 more than it is worth.