Hiring A Bankruptcy Attorney For Peace Of Mind
Should You File For Bankruptcy To Avoid Foreclosure?
Gabriel Freeman
When the foreclosure letters start arriving, you won't have a lot of time to determine a plan of action. Instead, you might scramble around trying to determine how to save your home. You'll need a different strategy if you don't have enough cash to pay your mortgage arrears. One option you might consider is bankruptcy. However, you might wonder if you should file for bankruptcy to avoid foreclosure. Here is a guide to help you answer this question.
Will bankruptcy stop a foreclosure?
The first thing to evaluate is the effects of bankruptcy. The primary question is whether it will stop a foreclosure, and the answer depends. Bankruptcy comes in several forms. If you want to stop foreclosure, you'll need to use Chapter 13. Chapter 13 gives you time to repay all your debts, including your past-due mortgage debt. Therefore, filing for this branch stops the foreclosure and gives you time to pay your debt. However, filing for Chapter 7 doesn't stop a foreclosure. If you file for Chapter 7 and are behind on your mortgage, you could still lose your home.
What other consequences will you face?
So, if you qualify for Chapter 13, you might want to evaluate the consequences of filing before using it to stop your foreclosure. Chapter 13 requires repaying all your debts in most cases. Therefore, the consequence is that you won't receive any debt forgiveness. Another consequence is it ties you to a three-year to five-year repayment plan you must follow. Finally, filing for any branch of bankruptcy results in credit score issues.
Do you have any alternative options to stop the foreclosure?
When speaking with a foreclosure attorney, you can learn more about Chapter 13 bankruptcy. However, you might also learn about other ways to stop foreclosure. For example, your attorney might discuss a loan modification, which offers a way to avoid bankruptcy and foreclosure. Attorneys generally have other options they can discuss with you. You might want to weigh the pros and cons of each option before settling on your solution.
Talk to a foreclosure attorney to learn more
After learning this information, you might decide to talk to a foreclosure attorney to learn more. Talking to an attorney provides the advice and legal counsel you need to make an informed decision. Additionally, you'll learn about all your options by talking to an attorney, so find one today in your city.
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Hello, my name is Kiley, and if you have major debts and you're thinking about filing for bankruptcy, this is the blog you need to read. Two years ago I was very much in debt, and then I was laid off from my job. The only alternative I had was to file bankruptcy. I was very nervous about filing bankruptcy until I spoke with a bankruptcy attorney. The attorney explained the bankruptcy process with me in terms that I could understand. After the consultation, I felt much better. If you're considering filing bankruptcy, this blog explains the process so you'll know what to expect. I wanted to write this blog so that I could help other people who are in the same situation and to let them know how the process works.