About Me

Understanding Bankruptcy Cases and Outcomes

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.

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Understanding Bankruptcy Cases and Outcomes

Facing Foreclosure: How Filing For Bankruptcy Could Help

by Loretta Harris

Most people are aware of the fact that a mortgage cannot be discharged as part of a bankruptcy case because this debt is secured by their home. Consequently, most people simply assume that filing for bankruptcy will not help their situation if they are facing a foreclosure. However, while you may not be able to eliminate your mortgage by filing for bankruptcy, the truth is that this debt relief option could still help you to get your home out of foreclosure. Continue reading to learn more about how both Chapter 7 and Chapter 13 bankruptcy can help you to address your issues with foreclosure.

How Chapter 7 Bankruptcy Can Help With Your Foreclosure

The moment your bankruptcy attorney files paperwork with the court on your behalf, all of your creditors will be required by law to cease collection efforts. This includes your mortgage lender. What this means for you is an immediate, yet temporary, stop to any foreclosure proceedings which may already be underway. Once foreclosure proceedings have been halted, Chapter 7 bankruptcy laws can help you to keep your home by providing you with some much needed time to get caught up on any past-due mortgage payments. If you are able to bring your account current, your mortgage lender will not be able to resume foreclosure proceedings once the court allows collection efforts to resume. However, it is important to note that you will need to demonstrate the ability to remain current on your mortgage payments in order for your home to be protected under asset protection laws. Consequently, if you have found that your mortgage does not truly fit into your budget, you may want to consider selling your home while your mortgage is in good standing in order to prevent further damage to your credit. 

How Chapter 13 Bankruptcy Can Help With Your Foreclosure

Chapter 13 bankruptcy provides all the same benefits as Chapter 7 bankruptcy when it comes to dealing with a foreclosure. However, Chapter 13 bankruptcy can take your foreclosure relief to the next level. This is because Chapter 13 bankruptcy provides you with the ability to set up a payment plan for your past due mortgage payments. Since this payment plan will be court ordered, your mortgage lender will not be able to dispute the terms of this plan. This will allow you to bring your account current even if you do not have the financial means to pay off your past due payments up-front. Just keep in mind that you will still need to continue paying your current mortgage each month in addition to satisfying your payment plan. 

For more information, contact a foreclosure attorney.