Key Points You Should Know about Bankruptcy and Foreclosure

Most people are aware that bankruptcy can help you keep your home, but
what some may not know is that the process can help you do this in more
ways than one. In most cases, it depends on your unique situation and
which chapter is filed. Aside from preventing or
avoiding foreclosure, you may be able to reduce your mortgage payment and cure default payments
to bring your mortgage current. Whether you are facing foreclosure or
feel it is a possibility in the future, there are a few points to review
when it comes to facing the issue in bankruptcy.

  • The automatic stay can delay or stop foreclosure in either
    Chapter 7 or
    Chapter 13 bankruptcy. The automatic stay can give debtors more time to figure out a solution
    depending on which chapter is filed. Yet, the effect of the stay may vary
    depending on where you are in your situation.

  • Chapter 13 can restructure debt obligations to make it easier for you to
    repay them. Some consider this option when they were unable to reach a
    negotiation with their creditor. Chapter 13 helps homeowners pay arrearages
    overtime on their mortgage so they can keep their home. You need to be
    able to make current mortgage payments as well with this plan. This plan
    can help you eliminate second and third mortgages by discharging them
    as an unsecured debt.

  • Chapter 7 filers may get more time to stay in their home if foreclosure
    is imminent. Some debtors use this time to save money to place toward
    their missed mortgage payments or toward moving to a new place. Certain
    debts attached to the home may be canceled (such as a home equity loan
    or additional mortgages). Some debtors may qualify to have certain property
    tax liabilities be eliminated.

By | 2017-12-13T00:46:05+00:00 August 8th, 2013|Foreclosures|Comments Off on Key Points You Should Know about Bankruptcy and Foreclosure