Two of the most frightening words on the planet are foreclosure and bankruptcy. However, if you are facing foreclosure and have heard that filing bankruptcy will help you keep your home, bankruptcy may not be so frightening after all. But is bankruptcy really an alternative to foreclosure?
The answer really depends on your circumstances.
Technically, the only alternatives to foreclosure are satisfying the debt, or coming to some other payment arrangement with the lender and making payments as agreed upon. Regardless of your circumstances, however, filing bankruptcy will temporarily delay a foreclosure since an "automatic stay", or halt, is put on creditors so that they cannot come after you to collect a debt during this period of time. Even if the lender files a "motion to lift the stay" and proceeds with the foreclosure, you may still have bought yourself some time.
Rhode Island Bankruptcy Lawyer, Bankruptcy Lawyer Denver, Loans After Bankruptcy,
If you have no income, bankruptcy is not an alternative to foreclosure. Bankruptcy will only delay the foreclosure. Once the bankruptcy is discharged (or before, in some instances), the foreclosure proceedings will resume unless the debt has been satisfied or other arrangements have been made with the lender.
If you have an income, bankruptcy may allow you to discharge many of your debts which may better enable you to make your mortgage payments. Making your mortgage payments on time will definitely allow you to avoid foreclosure. However, if you fail to make the payments as agreed upon, the foreclosure proceedings will resume once the bankruptcy is discharged.
Before filing bankruptcy, please note that you must complete credit counseling provided by a government-approved agency in order to explore alternatives to bankruptcy in your particular case. Also, there are some serious consequences of filing for bankruptcy including your credit will be adversely affected for up to 10 years.
Please be advised that I am not an attorney and am only giving you my opinion of whether or not bankruptcy is an alternative to foreclosure. If you are considering bankruptcy, you should seek legal counsel from an attorney in your area who specializes in bankruptcy.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Consumer Bankruptcy
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment