Hello, my name is Quianna Ridalgo. I enjoy talking to others about bankruptcy case outcomes. Court officials handle each type of debt, from credit cards to home loans, differently. Debtors must carefully prepare themselves for the court proceedings to cope with the outcome appropriately. The way creditors handle the discharged debt also interests me. Bankruptcy attorneys assist their clients with each step of the bankruptcy process from filing paperwork to meeting with creditors. Debtors and creditors both receive counsel that helps them move forward appropriately at every point in the case. The information I share on my site may help you learn about everyone's role in these complex cases. Feel free to come by anytime to learn more information about this interesting subject.
Are you potentially facing bankruptcy and worried about how it will impact your home? If so, you could be looking to come out on the other side with your home still belonging to you. Here is what you need to know about foreclosure and bankruptcy.
Bankruptcy Will Not Prevent Foreclosure Forever
For homeowners that are facing foreclosure, you must know that a bankruptcy filling will only temporarily prevent your home from being foreclosed. The protection is not designed to be permanent, since the protection is provided through a law called an automatic stay.
The law helps creditors from trying to take away your home while you are filing for bankruptcy. During this time, you should be able to talk to the lender that your mortgage is with and try to renegotiate terms or attempt a short sale. Your lender prefers these options over a foreclosure, since they will not lose as much money in the end.
Bankruptcy May Only Delay The Inevitable
Your future income will play a big role in if you're capable of keeping your home, and using bankruptcy may only delay an eventual foreclosure.
For example, using the chapter 13 bankruptcy laws will let you make up those missed mortgage payments. However, you must be able to afford the missed payments and the future payments at the same time moving forward. This can be challenging to someone that is filing bankruptcy due to a lack of employment, since the monthly mortgage payment will only get bigger instead of smaller.
Missing mortgage payments that are supposed to be made in arrears will eventually cause a foreclosure to happen. This means you would have gone though the whole bankruptcy process and still lose your home in the end. Using chapter 13 bankruptcy to save your home should only be done with you know your income will be there to make up for past and future payments.
Bankruptcy Can Be Used To Stay In Your Home A Little Bit Longer
If foreclosure is inevitable, bankruptcy can simply buy you more time in your home until you need to foreclosure on it. This can help you get your life back on track, since you don't need to make those mortgage payments knowing that foreclosure will begin once your bankruptcy filling is finished. Some people use this time to save up income that would typically go to their mortgage and use it for moving into an apartment.
Bankruptcy and foreclosure can be challenging to deal with on your own. Seek out the help of a lawyer that can assist with a viable foreclosure defense for you.Share